29 August 2017 (8:53 AM EDT)
Saying that U.S. markets are facing a “low start”, is an understatement. Futures of major U.S. indexes are highly negative. European markets are also bleeding numbers. All thanks to a missile launch by North Korea over Japan.
As written previously, such big gap down openings do not leave much room for trading in markets. We will either see a narrowly range bound trading pattern or some more losses till markets find support near bottom levels of current range.
For Dow Jones, these support levels will come near 21,700-21,600 and 21,500. In between, minor support is expected at every 50 points’ distance.
Low futures are indicating an opening near 21,700 for Dow Jones. If the index finds support after a low opening, then it will be considered a relief for global stocks. However, if U.S. markets continue to fall even after a gap down opening, then it will send a highly negative signal to global stocks and we may see a continuation of today’s negative trend in Asian markets tomorrow.
Since this fall is triggered by an event, markets may continue to remain very choppy over the coming sessions.
Watch how major indexes trade after a low opening, then follow the short term trend.
Good luck, enjoy the session!