US Stock Markets Today: DownTrend Continues, Dow Faces Risk of Falling below 24k

28 June 2018 (8:56 AM EDT)

After reports of slower-than-expected first quarter growth, U.S. stock futures turned negative earlier today.

Dow Jones futures lost more than -100 points and slipped below 24,000 at one time. European stock markets have also been trading highly negative following yesterday’s  extremely volatile and negative session in U.S. stock markets

U.S. stock markets had stared this week with negative numbers and we had written at that time that a weekly downtrend will continue in these markets, especially in Dow Jones. This is the third straight negative week for this mega index. On monthly charts, Dow Jones has been trading in a range, going down and going up to certain support and resistance levels. If this downtrend continues, then it will not be surprising to see this index heading down to 23,500- 23,300 levels of previous support.

Yesterday’ session was extremely volatile and today, U.S. stock markets could remain choppy near opening levels. Yesterday, major U.S. stock indexes and closed near their lowest mark of the day, which is a negative signal. Today, these indexes are set for a gap down opening and this will take them near major support levels of recent few weeks.

Day traders should wait and see if any support materializes near those levels. Our Pivot Trading page has these intraday support and resistance level for major stock index. Individual levels are:

Dow Jones is expected to open near 24,000 mark, which is considered to be its important support levels. If the index falls below this level, and stays lower, then bearish trend can intensify in this index and broader U.S. stock markets.

Day traders should wait and watch if a range bound trend develops (within previous sessions’ range) or the downtrend continues after a lower opening in markets. After that, just trade with that trend.

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