Wall Street Bullish On Stocks To Open The Week - Forex News by FX Leaders
DOW

Wall Street Bullish On Stocks To Open The Week

Posted Monday, March 22, 2021 by
Shain Vernier • 2 min read

The trading week is off and running on Wall Street, with positive sentiment being the early theme. At the midway point of the U.S. session, the DJIA DOW (+68), S&P 500 SPX (+31), and NASDAQ (+210) are all in the green. For the NASDAQ, the past four weeks have been challenging but rates are driving higher above 13,100.

Today’s economic calendar is lightly populated and features only a few peripheral metrics. Here’s a brief look at the highlights:

Event                                                                     Actual                        Projected           Previous

Chicago Fed National Activity Index (Feb.)       -1.09                                NA                        0.75

Existing Home Sales Change (Feb.)                    -6.6%                             -3.0%                     0.2%

The downturn in Existing Homes Sales (Feb.) is the headliner here. As we enter the spring months, this figure should improve as the peak home-selling season approaches. However, higher Treasury bond yields are forcing mortgage rates higher. According to the MBA, rates are on the uptick, now eclipsing 3.25% on a 30-year fixed mortgage. This will be a trend to watch and one that could potentially slow the red-hot U.S. real estate market. 

On the Fed front, Jerome Powell issued a few public comments earlier this morning. Basically, Powell addressed concerns regarding the speed of stimulus payment distribution and the need for a more inclusive economy. All in all, Powell’s comments were non-factors in this morning’s action on Wall Street.

Wall Street Enters Late-March Trade

With Q1 2021 winding down, the June E-mini NASDAQ is attempting to pare recent losses. Prices have broken above two key resistance levels and are headed north.

Wall Street
June E-mini NASDAQ Futures (NQ), Daily Chart

Bottom Line: Right now, it’s all-systems-go for the NASDAQ. However, if the Wall Street bears get involved, a pullback buy may come into play. Until the closing bell, I’ll have buy orders in the June E-mini NASDAQ ready from 13,010.25. With an initial stop loss at 13,003.75, this trade produces 35 ticks on a 1:1 risk vs reward ratio.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments