12 January 2017 (Update: 11:14 AM EST)
U.S. and European markets are crashing a day after Trump’s first press conference as president elect, where he omitted to say anything about his earlier mentioned fiscal stimulus.
Technically, both these bigger markets were already on the verge of a big move- in any direction; just as we had warned our readers at the beginning of this week in this post:
Dow Jones is still at a safe distance from its range support (19,700) and DAX is trying its utmost to keep above its own major support of 11,500. As long as these major indexes do not breach their respective support, U.S. and European markets will be safe in their current range.
However, one these two big indexes fall below their given support level, we can expect a bigger meltdown in U.S, European and other global markets.
Earlier: (8:51 AM EST)
U.S. stock futures are considerably negative after a drop in Jobless Claims numbers and speeches by various FOMC members who keep talking about 3 rate hikes this year.
Trump’s press conference yesterday was a dampener for global markets. European markets also reversed their gains made yesterday and DAX (Germany) is back to trading below 11,600.
Going by stock future numbers, Dow Jones is expected to open near 19,920 and trade within its previous range of 19,973- 19,887. The index has been trading more or less within these same numbers for the last one month. It can go either way after the opening bell and traders should watch for buying near support and selling near resistance. The index may find quick support and resistances at every 25 points’ distance. So, lower region of its immediate trading range will be 19,925- 19,900 and upper range will be 19,925- 19,950. After this “inner range” an out range will be marked by support and resistance at 19,875 and 19,975 respectively.
Watch those levels and trade with the short term trend. Expect market volatility to remain high.
Good luck, enjoy the session!