Skip to main content

All eyes on US stocks this afternoon- S+P 500 futures pivot around 5,300

As covered here earlier today, both the Dow Jones and the S+P 500 posted negative outside day reversals. To remind the reader of what exactly that entails, it is when the instrument opens higher (in this case a record opening level) and then sets a new high and then subsequently closes below where it closed the day before. So, in the case of the S+P 500 that opening yesterday was at 5,310.07 (a record opening level). The index had closed on Wednesday at 5,308.15. The new all time high reached yesterday was set at 5,325.49. The index later closed at 5,297.10. So, there you have it- a negative outside day reversal from a new record high too and just like that seen on the Dow Jones. However, it must also be stressed once again; that such a formation is not always a guarantee that the index will move lower and not set fresh highs the following day. So, in that sense it is not a consistent indicator, as mentioned here many times before, but when seen from record levels and in tandem with the Dow, it might be more indicative. We shall just have to see where the index ends tonight to see how that plays out. Ahead of the opening today the S+P 500 futures have been pretty pivotal around that 5,300 handle, currently indicating a reopening at around 5,302
 

Ready to Get Started?

Start here. Join 2.9M Libertex users around the world!