Summary:

• US stock markets open lower
• Tuesday saw strong gains for all major US indices
• However, a lower low may have formed with yesterday’s peak

The Wall Street open has seen all three major US indices open lower than last night’s close with the US500, US100 and US30 all currently lower by around half a percent. Tuesday’s session was strong one for the US500 with the market rallying out the gate on the cash open a rarely looking back during a 20 point rally that lasted into the close. 

 

 The US500 enjoyed a strong rally during the cash session yesterday and rose by approximately 20 points whilst Wall Street was open. Source: xStation

Longer term however there remains some sings of caution however. A H4 chart shows that after peaking on Tuesday evening the market may have in fact made a lower low. This would mark the second such event since the all-time high of 2488 and until we see a move back above 2460 then the possibility of a lower low remains. A fib retracement taken from the record peak which was made earlier this month can give some interesting levels to keep an eye on. The 23.6% fib at 2432 now may become an important support if retested whilst the 61.8% fib at 2460 is another level that could prove pivotal. 

 The US500 may have made a lower low yesterday. The 23.6% and 61.8% fib retracements of the latest decline at 2432 and 2460 respectively could provide support and resistance levels. Source: xStation