10 Sep, 2014 (8:21AM IST)
Sep 9, 2014, (10:51 PM EDT)
Global markets are starting on a correction, or negative trend on central bank worries, as U.S. markets closed with a range-breaching fall in their last session.
As I had written in my last post about U.S. markets, the ECB is not getting support for its asset-purchase program (QE , that has caused the recent “hope” rally in markets), and the Fed’s meeting next week is expected to discuss rate hikes in futures.
All this means stoppage of free liquidity to markets, making markets climb down from higher levels.
That’s what U.S. markets started in their session, with Dow Jones barely surviving its major support of 17,000. Even after a near -100 points fall in the index, U.S. stock futures are trading negative in early hours of Asian markets, indicating continuation of negative trend in those markets.
That’s why Asian markets are also trading with losses and European stock futures are also in the red. SGX Nifty, for the first time in many weeks, is down by nearly half a percent, signaling a gap down opening in Indian markets too.
World markets are expected to trade with some choppiness and in the negative zone, led by U.S. markets. Various markets are expected to travel back to their previous support levels form where the rally had started.
If Dow Jones falls below 17,000, (which it did in the last session) and stays below that level, then for this index next 100 points loss is nearby. If the index continues with the negative trend, then its next supports will arrive near 16,800, 16,600 and 16,400.
I have written in the same post about DAX going down to 9,000 in the event of a strong correction.
World markets are expected to trade with a negative bias today.
Good luck, have fun, enjoy the bearish tone in stock markets today 🙂
See you later.