30 June 2017 (8:49 AM EDT)
Futures of major U.S. indexes have been quite volatile through the session, indicating that another volatile session could be in store for U.S. markets.
Yesterday, all major indexes, Nasdaq, S&P 500 an Dow Jones had breached their major support levels, before staging some recovery and closing above those levels.
Dow Jones, at one point, had fallen below 21,200 which indicated big weakness creeping in in this index. Today, traders would be watching this support again and whether it would be taken out good. Here is a look at a forthcoming support and immediate resistance levels of Dow Jones (hourly chart in Heiken Ashi candlesticks):
As you can see, yesterday’s low comes at 21,200, which also happens to be a major support level. Below that level, major support comes at every 100 points (there will be some minor supports within those levels).
For intra day trading today, one can see the immediate rage between this support of 21,200 and 21,350. In fact, before 21,350, the index may face a minor resistance at 21,333 which was last high point on hourly chart. Another major resistance will come near 21,388. If you remember, Dow Jones had a support zone between 21,380- 21,400 till yesterday.
Now that zone will act as a resistance zone and only if this index succeeds in crossing above this zone, it will be back in its previous range and be safe from correction.
If it turns down from this resistance, then yesterday’s correction will prove more stable and stronger.
Tech index Nasdaq will also be in focus, which breached its range support and is already in correction territory.
Overall, U.S. markets will either have a range bound session, where major indexes could stage a feeble recovery and trade positive in a smaller range, or yesterday’s correction will continue to test previous low levels in these indexes.
Wait to see which trend pattern unfolds in markets today, then trade accordingly.
Good luck, enjoy the session!