US Markets Today: Will gap down opening start a correction?

Apr 17, 2015, (9:25AM EDT)

Highly negative U.S. stock futures are indicating a gap down opening in U.S. markets today. Will it translate into the start of a correction in these markets, as predicted by some analysts?

To know that, traders would need to watch some major support levels in prominent indexes. Only a closing below these levels will indicate mounting selling pressure in U.S. markets and only a confirmation of this negative pressure next week will confirm a correction.

Major U.S. indexes have been confined in a strict range for many months now. This range has many smaller sub-ranges. For Dow Jones, the upper part of this range is made up between 18,200 and 17,950 levels. If Dow Jones closes below this “floor” (17,950) then only bears can look forward to more gains in coming sessions. 17,770 and 17,650 will make next support levels for the index.

For S&P 500, levels of 2094 and 2088 make great support.  Until these levels are intact, bears are not going to flock this index and it will continue to trade in its higher range. However, if S&P 500 falls below 2088, then 2070 and 2045 will be its next support stops.

For Russell 2000,a major support comes near 1266 and don’t expect any negative trend in this index till it closes below the given level.

4376 makes a  strong supportive floor for Nasdaq 100. Below this level the index will find support only near 4344 and 4288 levels.

Watch out for these support levels, give markets some time to settle after a gap down opening and then, if major indexes fail to sustain any recovery, trade with the negative trend.

Good luck, enjoy the session.

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European Markets, US Futures Crash on Greece Worries

Apr 17, 2015, (7:56AM EDT)

European markets and U.S. stock futures are crashing in this last session of the week on worries about a Greek default on its debt payment.

German index DAX has been suffering big losses this week and right now, this index has come close to its major support of 11,767. Once this support is breached, DAX will embark upon a bearish trend back to its next support near 11,330.

Similarly, Euro STOXX 50 index is precariously close to its major support of 3,680. If the index drop below this level, and closes below the number, then 3640 will be next support and then 3,580.

FTSE100 is heading towards its major support of 6,977. A closing below this level will take the index towards next support of 6,887 and then, if bearish trend continues, only 6,770 will be able to provide some relief from bears.

CAC40, which has been steadily going up, has suffered most and has breached all major support to fall below its major support of 5,167. Its next supports will be 5,145 and 5,087 levels.

Please remember, these levels are possible only if the Greek debt problem is not solved. It is a news based correction so be careful about a positive news and trend reversal.

U.S. stock futures are also trading with deep cuts. More about these markets later.

Enjoy the bearish trend.

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Indian Markets Today: Volatile, looking for support

17 Apr, 2015 (8:53AM IST)

Nifty is sandwiched between its 20-Day MA (8,704) and 50-Day MA  (8,619).

These will make the immediate support for the index. So, a breach in 8,700 level in Nifty might take it to yesterday’s low level of 8,648 and if Nifty fails to survive that support, then down to 8,619 level.

9,698 remains a big Fibonacci support for Nifty and only a closing below this level will continue the bearish trend. Otherwise, this index could become range bound at current levels.

If Nifty trades positive, which looks doubtful going by technical signals, then yesterday’s high level of 8,762 will make a major resistance for the index.

Indian markets are following global cues. Any improvement in those cues could trigger a reverse trend in Nifty so keep strict stop losses and keep an eye on any trend reversal signal.

Trade safely, enjoy the session.

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World Markets Today: Volatile, Under Negative Pressure

Fri, 17 Apr, 2015 (8:52AM IST)

Apr 16, 2015, (11:21pm EDT)

Major global markets are showing a mounting negative pressure. Although a clear trend may not be visible, especially in U.S. markets where indexes have been highly choppy and traded in a narrow range in their last session.

European markets are under pressure from a Greece default worry- a ghost that keeps resurfacing at regular intervals.

In Asia, Nikkei( Japan), Nifty (India) and ASX 200 (Australia) have been facing this selling pressure. Other markets have been range bound and trading mixed.

Right now, U.S. and European stock futures are trading with slight negative numbers, indicating that these markets might continue their trend of previous session.

SGX Nifty is nearly flat, indicating that buyers have left the arena.

Expect global markets to remain under negative pressure in absence of any good news. The Fed’s rate hike and a Greek default in euro zone will keep bigger markets and emerging economies under pressure.

Good luck, enjoy today’s trading session.

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US Markets Today: Under Pressure on Greece, Earnings

Apr 16, 2015, (9:24AM EDT)

European markets are trading in the red, with DAX (Germany) suffering -200 points fall on a Greek default fears.

U.S. stock futures are trading low but keeping within last session’s range. As discussed before, Dow Jones has a narrow range between 18,100 and 17,900. Upper side is limited as the all-time high levels are quite near for the index (18,244), but lower side is open and it will be interesting to see if the index breaches its lower threshold of the current range or continues within this restricted range.

If, by any chance, the lower limit of 17,900 is breached then 17,700 will provide another strong support to Dow Jones.

For intraday trading, 18,097 could make or break today’s trend for this index. Below this point, Dow faces the risk of more losses down to 18,044- 18,000. A fall below that level will take the index o next supports of 17,900 and 17,800 respectively.

Remember, above 18,097, the index will have more chances of staying positive.

U.S. markets have been trading with usual high volatility of earnings season. That choppiness might stay if markets don’t take a clear trend.

Watch these levels carefully and trade with the trend.

Good luck, enjoy the session.

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Indian Markets Today: Rising Crude Brings Selling Pressure

16 Apr, 2015 (9:22AM IST)

Indian markets trade on hopes and fears. Hopes of a rate cut from the RBI and fears that there will be no rate cut soon from the RBI.

Yesterday, Indian markets saw a very sudden, and very strong sell off. Nifty crashed and midcap stocks suffered deep cuts.

It was a clear breach of current range in Nifty and today, a subdued SGX Nifty and swiftly rising Crude Oil prices indicate that this selling pressure might continue in Nifty, if the index falls below 8,700 level.

This level is the strongest support for Nifty. First intra day resistance will come near 8,772 mark in Nifty, in case markets see a bounce back. Otherwise, watch for more losses below 8,700 mark in Nifty and broader markets.

Good luck, trade safely.

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World Markets Today: Volatile within Weekly Range

 16 Apr, 2015 (9:20AM IST)

 Apr 15, 2015, (11:49pm EDT)

Global stock markets continue to trade within their weekly range with highly volatile trading pattern.

U.S. markets went back to the high levels of their range, while Asian markets are trading mixed with a choppy trend. European markets saw a sudden drop just before their closing bells and ended almost in red after a highly positive session. So, it will be quite interesting to see if this last-minute pressure continues in these markets in today’s session.

Local economic cues and the impact of rising Crude Oil prices are dominant trend setting reasons in this session. Selling at high – or near resistance levels, still looks a better bet in global markets.

Watch those levels for your local index ad trade accordingly.

Good luck, have a great day in stock markets today.

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US Markets Today: Volatile on data, earnings

Apr 15, 2015, (9:14AM EDT)

A few economic reports have been released till now and a slight drop in numbers have brought greenly to U.S. stock futures. European markets are enjoying some good gains after recent losses on the ECB’s positive words about its QE program.

U.S. markets are expected to trade within their weekly range with high volatility, just like last many sessions.

Dow Jones is still range bound between 18,100- 17,900. These levels will make the immediate range for today also. The index has been confined in this range the whole week, giving good chance to sell at high. Buying at dip is more risky because there is not any major reason to push markets beyond this limit.

Look at individual stock trading for stronger trend and bigger profits. Those who would like to buy and sell at smaller intervals for small profits can jump into index trading.

Good luck, enjoy the session.

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Indian Markets Today: Weak on Global cues

 15 Apr, 2015 (9:09AM IST)

Rising Crude and Dollar can affect Indian equities today. Indian stock markets have been advancing on hopes of a rate cut in coming months but higher Crude prices will have a negative impact on such hopes.

That’s why SGX Nifty is trading nearly -30 points down before the opening bell in Indian markets, indicating a gap down opening in Nifty and broader markets.

Nifty, as discussed previously, faces strong resistance near  8,850 levels. For today, 8,812 – 8,800 could provide strong support to the index. Below these levels, Nifty can face selling pressure if global cues remain weak.

8,783 has created a “floor” in a new range for Nifty (8,860- 8,780). The range will be breached only below this level, otherwise Nifty will be considered range bound in an uptrend.

Last session’s high and low (8,841- 8,762) will mark the immediate range for Nifty today. Below 8,812, Nifty could trade negative for the day. Above this level, a positive session might take place.

Good luck, enjoy the session.

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World Markets Today: Volatile, Range bound trend continues

15 Apr, 2015 (9:07AM IST)

Apr 14, 2015, (11:37pm EDT)

Global stock markets continue to trade with high volatility and in limited range as was evident by previous session in U.S. and European markets.

European markets traded mostly negative and big indexes like DAX trimmed their earlier gains.

U.S. markets traded in a viciously choppy manner with swings between positive and negative and major indexes closed mixed.

Asian markets are following similar trend after weak Chinese economic reports and are trading with high volatility. SGX Nifty is showing losses in early trade while U.S. and European stock futures are also trading slightly in the red.

Crude Oil prices and the Dollar index have been gaining since yesterday and this might affect emerging economies and equity markets.

Expect a highly volatile session in global markets today. Major indexes are expected to trade within their last week’s range. Immediate range for today will be last session’s high and low marks. Stock trading will be a better strategy for day traders instead of getting into choppy indexes in early session. Second half of the session might provide better clues to index trading.

Good luck, trade safely.

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