13 March 2018 (8:50 AM EDT)
U.S. stock futures have turned highly volatile after news reports that President Trump has fired the Secretary of State, Rex Tillerson.
U.S. stock futures had just jumped up with big gains, happy with flat inflation numbers when news reports broke about Tillerson’s removal and futures dived down in a flash. Dow Jones futures went crazy and dropped more than 100 points within seconds.
Although futures have recovered somewhat after that flash drop, but it seems that we are in for another volatile ride in U.S. stock markets today.
Yesterday, Dow Jones had dropped more than -150 points and although the index hinted at support at lower levels, today’s political bombshell could affect the trading pattern in U.S. stock markets.
Nasdaq had been trading higher, in an uptrend but Dow Jones had been range bound and that range bound pattern is expected to continue today also.
For Dow Jones, 25,500 had been a strong resistance and 25,200 was its immediate support level. The higher resistance remains intact but the support level could face risk of breakdown today. If that happens, then next major support will come near 25,000 and 24,800.
U.S. stock futures are still trading with healthy gains. But now, its seems that the trend after the opening bell could change in U.S. stock markets.
Day traders should watch if resistance levels become stronger, then trade with the trend. You can check intraday support and resistance levels for major U.S. indexes on our pivot trading page.