A Sluggish Weekly Open On Wall Street

The second full trading week of May is in full swing, with stocks coming in mixed. At the halfway point of the Wall Street session, the DJIA DOW (-70), S&P 500 SPX (+3), and NASDAQ (+64) are showing signs of fatigue. Long gone is the post-unemployment rally of last Friday ― neutral sentiment is bringing largely muted action.

This morning featured a relatively vacant economic calendar. However, the weekly short-term U.S. Treasuries auction is in:

Event                                    Actual             Previous

3-Month T-Bill                      0.125%             0.120%

6-Month T-Bill                      0.155%             0.150%

Yields are up slightly as the demand for bonds has fallen modestly. At this point, investors are taking a wait and see approach to this week’s trade. Safe-havens are in the red, oil is down, and the S&P 500 and DJIA are hovering near flat. Once again, the bright spot on Wall Street is a moderate rally in the NASDAQ.

Sentiment Largely Neutral On Wall Street

The June E-mini S&P 500 has pared overnight losses and is threatening to turn positive. Prices are in rotation near the 62% COVID-19 retracement (2930.00) and aren’t in a hurry to go much of anywhere.

Here are the key levels to watch in this market:

• Resistance(1): 62% Of COVID-19 Sell-Off, 2930.00
• Support(1): Bollinger MP, 2817.25
• Support(2): Daily SMA, 2817.00

Overview: Moving forward, there is some positive news from the COVID-19 front. Pharma company Abbott Laboratories received a second authorization from the Food and Drug Administration to move forward with a COVID-19 antibody test. The test is being viewed as a potential game-changer in identifying individuals that have an immunity to the virus. While a vaccine remains a ways off, Wall Street is optimistic that the COVID-19 pandemic may have already peaked.

ABOUT THE AUTHOR See More

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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