⚡Crypto Alert : Altcoins are up 28% in just last month! Unlock gains and start trading now - Click Here

Bulls

U.S. Indices Rally On The Open, S&P 500 Technical Outlook

Posted Monday, May 7, 2018 by
Shain Vernier • 1 min read

Market participants are jumping into equities in large numbers as the Monday U.S. session is underway. For the first hour of trade, the DJIA is up 200 points and the S&P 500 has rallied 15. It appears as though Friday’s 3.9% unemployment figure is carrying considerable weight in the minds of most active traders. Even with a FED rate hike on the way for early June, the 25,000 level in the DOW is likely to be tested by mid-week.

Today features a wide-open economic calendar. The primary events will be the 3 and 6-month bond auctions at 11:30 AM EST. Investors will be watching yields and pricing very closely after last week’s FOMC meeting.

E-mini S&P 500 Futures

June E-mini S&P 500 futures have broken above topside resistance on the daily time frame. Right now it is game-on for S&P bulls, with price extending Friday’s gains.

Emini SP
June E-mini S&P 500 Futures (ES), Daily Chart

Here are the key levels to watch for the remainder of the session:

  • Resistance(1): Swing High, 2718.50
  • Support(1): Daily SMA, 2665.00
  • Support(2): Bollinger MP, 2658.50

Overview: Since the rejection of April’s 78% retracement (2588.75), the E-mini S&Ps have been dominated by bullish sentiment. Subsiding concerns over upcoming FED tightening, coupled with an unexpectedly strong U.S. employment report, have been a breath of fresh air for those long the stock market.

For now, the march north continues. A test of the Swing High (2718.50) is a likely scenario as the trading week progresses.

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 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments