U.S. Stocks Attempt Recovery - Forex News by Strategia Forex
Stocks are Holding Up

Stocks have opened mixed this morning, as traders are taking an early non-committal stance toward equities. Wednesday’s session took no prisoners, with the leading U.S. indices plunging south. With most in the financial media predicting a recession coming sooner rather than later, “risk-off” is back into style. U.S. stocks have backed up this assertion, with the DJIA DOW (+15), S&P 500 SPX (+1), and NASDAQ (-5) hovering near flat on the open.

During the U.S. pre-market hours, Continuing and Initial jobless claims for late-September were released to the public. These figures brought more bad news, each missing consensus projections. At this point, all eyes are on the ISM Non-Manufacturing PMI at 10:00 AM EST.

U.S. Stocks Attempt Recovery

Wednesday was a brutal session for U.S. stocks. Lagging economic numbers and impeachment worries sent equities plummeting. As you can see by the December E-mini NASDAQ daily chart below, the damage was substantial.

December E-mini NASDAQ Futures (NQ), Daily Chart stocks
December E-mini NASDAQ Futures (NQ), Daily Chart

Overview: No doubt about it, U.S. stocks are in a tough position. The U.S./China trade war rages on, Trump is under political pressure, and the economic data points to slowing growth. If today’s ISM figures disappoint, Wednesday’s losses may extend.

For the December E-mini NASDAQ, the 7500.00 psyche level is a key number. If trade is established beneath this area, a test of August’s lows at 7250.00 is very likely to develop in the near future.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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