S&P 500

U.S. Indices Open The Trading Week Mixed

Posted Monday, June 15, 2020 by
Shain Vernier • 2 min read

Weekly trade of the U.S. indices is off and running. Through the first half of the session, the DJIA DOW (+5), S&P 500 SPX (+5), and NASDAQ (+63) are laboring. At the moment, it appears that the widely expected “second-wave” of coronavirus infections may be getting underway.

On the U.S. economic news front, it’s another vacant Monday calendar. Here are the events worthy of note:

Event                                                                         Actual            Projected         Previous

NY Empire State Manufacturing Index (June)     -0.2                     -27.5                  -48.5

3-Month Bill Auction                                               0.175%                  NA                   0.170%

6-Month Bill Auction                                               0.185%                  NA                   0.185%

The headliner of this group is the vast improvement in the NY Empire State Manufacturing Index (June). Business activity is returning to NYC as lockdowns are being lifted ― this is no surprise. Of course, the real issue now is the rate of new COVID-19 infections. These figures vary wildly, with increasing cases being reported in several U.S. states. 

Since March, the U.S. indices have posted an epic recovery. Is the positive sentiment here to stay? The answer to that question depends upon the coronavirus and how future outbreaks are handled. Given the large-scale protests of the past three weeks, it’s highly likely that the contagion’s reach is now extending.

U.S. Indices Noncommittal Amid Developing “Second Wave”

The June E-mini NASDAQ is holding firm in bullish territory after last Thursday’s epic selloff. Since the U.S. overnight, values are in the green.

U.S. indices
June E-mini NASDAQ Futures (NQ), Daily Chart

Here are a few levels to be aware of this week:

  • Resistance(1): Spike High, 10,155.50
  • Support(1): 38% COVID-19 Recovery Retracement, 8808.25

Overview: Back in March, many market analysts predicted that the U.S. indices would crash in August on the emergence of a COVID-19 “second wave.” Presently, the virus is being considered “largely contained.” Nonetheless, the situation remains fluid. Should new infections spike, a correction in risk asset pricing is to be expected. As we move deeper into the summer months, diligently monitoring the spread of the coronavirus is going to be a primary facet of most Wall Street insiders’ approach to the markets.

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