16 February 2018 (update: 1:32 PM EST)
U.S. stock markets have turned negative as news broke that the special counsel Robert Mueller has issued indictment against 13 Russian nationals for meddling in the 2016 presidential elections.
Social media sites Facebook, Twitter and Instagram have been mentioned in these indictments for having been used for spreading fraudulent propaganda during the elections. Twitter and Facebook stocks have turned with the news.
After trading with positive numbers through the global session, U.S. stock futures have started turning negative, indicating that U.S. stock markets may see a negative opening today.
That also means that U.S stock markets will see a range bound and quite choppy intraday trend like yesterday.
As we had written previously, U.S. stock markets are trading within a broad range and till the range support or resistance levels are breached, the trend will remain sideways. We had also mentioned that U.S. stock markets will remain closed on Monday for President’s Day holiday so some profit booking is possible in markets.
For Dow Jones, as mentioned earlier, a resistance zone exists between 25-300-25,55o marks. After yesterday’s high closing (at 25,200), the index came very close to this resistance zone and so, a negative turn in today’s stock futures are not surprising.
The immediate intraday trading range for major U.S. indexes will remain within their previous session’s high and low levels. Intraday pivot levels will create farther support and resistance levels. You can check these pivot levels for major U.S. stock indexes on our pivot trading page, or check here:
Expect U.S. stock markets to have a volatile and choppy intraday trend. The previous downtrend is still not over, at least not till Dow Jones crosses above its strong resistance of 25,550. If and when Dow Jones starts trading above that level, then we can expect this index and broader U.S. stock markets to resume their previous uptrend. Otherwise a sideways and highly volatile trading trend will continue to dominate U.S. stock markets.