13 May 2019 (9:21 pm EDT)
China has retaliated with new trade tariffs on the U.S. goods and that has sent U.S. stock futures in a tailspin.
Dow Jones futures have lost more than 500 points which means we are going to witness deep cuts in this index and broader U.S. stock markets at the opening bell.
This also means this month’s downtrend is intensifying and there is no hope of any technical support as long as these two big economies continue to fight their trade-tariff war.
Day traders can check daily pivot levels given on our Pivot Trading page, to see if any levels provide short term relief from opening fall. For major indexes, these levels are:
- Pivot Levels for Dow Jones
- Pivot Levels for Nasdaq 100
- Pivot Levels for Russell 2000
- Pivot Levels for S& P 500
Last Monday’s crash in U.S. stock markets is set to be repeated on this Monday too. For day trading, such big gap down openings can only be waited out until markets manage some recovery. After that, it will be a better day trading strategy to sell with the trend from higher levels.
Expect U.S. stock markets to continue with their strong downtrend. Markets may witness high volatility after a lower opneing.