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Friday's Market Minute: Big, Round Numbers

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Friday's Market Minute: Big, Round Numbers

July started off with a bang for equities, with three of the four major index futures reaching new all-time highs.

S&P futures closed above the 3,000 level for the first time yesterday, cruising into another fresh peak in the overnight session above 3,012 before pulling back. Dow futures, bolstered by a surge in Boeing, handily broke through the 27,000 level and prompted a fresh wave of baseball caps trumpeting this new milestone. Nasdaq futures came within reaching distance of 8,000, but ended the day slightly down (and on what looks like a spinning top candle, which can indicate a stall in momentum). Once again the laggard, Russell futures are continuing their downward slide after a sharp bounce at the end of June. The small-cap contract is down about 0.6% from then – whereas the /NQ is up over 2.5%, and the /ES and /YM are both up 1.9% during the same period.

While these big, even numbers can be exciting to see, keep in mind that trading decisions based on arbitrary price levels are typically inferior to those based on price action. During times of big market moves stemming from either enthusiasm or panic, sticking to trading systems and keeping risk defined are more important than ever – no matter how many zeroes an index has at the end.

Information from TDA is not intended to be investment advice or construed as a recommendation or endorsement of any particular investment or investment strategy, and is for illustrative purposes only. Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade.

Image Sourced From Pixabay

Posted-In: TDAmeritradeNews Futures Global Markets General Best of Benzinga

 

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