U.S. Stocks Open Higher As Week Winds Down

U.S. stocks have opened higher this morning as investors prepare for the weekend break. At the ¼ point of the Wall Street trading day, the DJIA DOW (+149), S&P 500 SPX (+19), and NASDAQ (+39) are all in the green. Although the news cycle is relatively quiet, the preliminary University of Michigan Consumer Sentiment Index (March) was released a few minutes ago.

Today’s U.S. economic calendar features a few peripheral metrics. Here’s a look at the data:

Event                                                     Actual                   Projected            Previous

PCE Price Index (YoY, Feb.)                    1.6%                         NA                       1.4%

Personal Income (MoM, Feb.)               -7.1%                      -7.3%                  10.1%

Personal Spending (MoM, Feb.)           -1.0%                      -0.7%                    3.4% 

UM Sentiment Index (March)                84.9                         83.6                    83.0

In short, inflation is gaining ground, as is consumer sentiment. However, February was a rough month for personal income and spending. These two figures suggest that individuals are still making the transition from COVID-19 budgeting to life post-COVID.

It’s been a solid open for U.S. large-cap stocks. Let’s take a look at the DOW from an intermediate-term perspective.

U.S. Large-Cap Stocks Rally

Currently, a bullish bias is warranted toward the June E-mini DOW. Prices are above 32,500 and headed toward fresh all-time highs.

Here are two levels to watch in this market for the near future:

• Resistance(1): All-Time High, 33,116
• Support(1): 38% Current Wave Retracement, 32,090

Overview: For the time being, it’s long-or-nothing for U.S. large-cap stocks. Until we see the Fed commit to a shift from QE unlimited, equities are likely to keep rising. If Q1 is any indication, it looks like 2021 is going to be a positive year on Wall Street.

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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