6 December 2017 (8:47 AM EST)
After trading substantially lower through the global session, U.S. stock futures have recovered smarty. Especially futures of Dow Jones but Nasdaq futures are still languishing much lower.
But, last few session’s fall in major indexes is expected to keep those range bound and highly volatile.
Dow Jones is now back in a previous part of it broader range and faces resistance near 24.300. Its new support levels are 24,150- 24,060 and 24,000. If you see its hourly chart, the index has been continuously declining since last two sessions after hitting its all time record high of 24,532 on Monday. In an uptrend, 24,300 would have provided support to this mega index abut as things stand, the political upheaval is weighing on Dow Jones and broader U.S. markets and the enthusiasm of tax reforms seems to have evaporated form U.S. markets very quickly.
Tech stocks are already facing profit booking pressure and the tech index Nasdaq has already made a “double top”, indicating a trend reversal and major resistance near 6,900 mark.
S&P 500 has also been very volatile and has been declining continuously with Dow Jones. The index had a very steep decline with the rest of the market one Friday last, one news reports related to Special Counsel Robert Mueller’s investigation of Russia collusion surrounding Trump White House.
That volatility is expected to continue in U.S. markets are major indexes will most probably trade within last week’s range. Watch resistance levels on hourly charts and trade with the short term trend, which seems to have become weaker since last week.
Good luck, enjoy the session!