13 August 2019 (8:35 am EDT)
US stock markets were already under pressure in the US-China trade worries.
Now geopolitical turbulence in other regions have added to those worries and made US stocks to fall with big margins in the previous session. Today also, US stock futures are trading negative, indicating that yesterday’s negative trend will continue in US stock markets.
In Asia, simmering public unrest in Hong Kong is keeping investors worried. Yesterday, Argentina added rocket fuel to those worries when its main index fell by whopping 15434.64 points (38,94%) on unexpected results in the country’s presidential primary elections. the pro-business and pro-reform leader, President Mauricio Macri lost by a bigger than expected margin. Argentine currency peso lost 25% of its value against the USD in just one day.
This market-havoc in Argentina shook other markets too and jittery US stock markets also traded negative on Monday and closed lower by substantial margins.
Dow Jones closed much below the support of 26,000. Although the previous week’s range support levels are still intact, going by the highly negative US stock futures and European stock markets at this time, one can expect that US stock markets will trade under pressure, especially if there is no respite in Argentine stock markets.
Day traders can use pivot levels given on our Pivot Trading page to see which levels are providing resistance or support to US stock indexes. These levels are:
US stock markets are expected to trade within the lower half previous week’s trading range. The monthly, weekly and daily trends are negative for US stock markets at this time.
Last week’s lowest point will be an important support level for major US stock indexes. If that support is breached for any reason, we can expect more losses in these markets. Otherwise, it will be a rangebound trend within the last week’s trading range.
We’ll keep an eye on Argentinian stock markets (which will open half an hour after the opening bell in US stock markets) and update our readers about what is happening in those markets. Their opening could create volatility in US and European stock markets too and day traders should cautiously watch the intraday trend during that time.