15 August 2018 (6:53 AM EDT)
Its still early morning and more than two hours to go for the opening bell in U.S. stock markets, but it seems, we are going to see a big gap down opening in U.S. stock markets today.
U.S. stock futures and European stock markets have tumbled after Turkey announced stiff tarries on many American goods. Turkish lira has jumped against USD but at the same time, the Dollar index is also rallying, crushing other currencies.
Dow Jones futures are nearly -150 points down at the time of writing, indicating that the index will erase yesterday’s gains at the opening. Futures of Nasdaq and other major U.S. indexes are also pointing to similar opening losses.
A app own opening will keep U.S. stocks within last two sessions’ trading range. Major indexes had stabilized near their important support levels and it remains to be seen, if those supports will hold today.
Dow Jones, for example, is close to its major support of 25,000. Above this level, Dow Jones will remain sideways as seen on weekly charts.
Although the overall trend in still positive for U.S. stock markets, but the intraday trend has turned highly volatile and sideways due to this week’s new trade problems between Turkey and the U.S.. This is affecting currency markets and through upheaval in forex pairs, global stock markets are being affected too.
At the time of writing, an intraday choppy session looks set for U.S. stock markets today.Day traders will have to wait and see if the lower opening continues in an intraday downtrend or if major stock indexes find support and trade in small range after that.