What’s Going On In The Global Stock Markets?
Dave Green • 1 min read
Another bearish day for the global stock markets. The heavy sell-off is not only limited to the Asian stocks, but the heat is being felt by U.S shareholders. The Major U.S Indices are declining more than 1% per day. The S&P 500 index recorded the biggest daily decline in 5 months, with a drop of 1.26%.
Consequently, the Japanese stock market index, the Nikkei, is also struggling due to U.S stocks and the weaker dollar. Today, the Nikkei index began trading with a dramatic bearish trend and a drop of over 250 points. Now, the index has dropped below a major psychological support level of $19000.
At the moment, it's quite challenging to predict the reversal as it's been trading bearish despite an oversold RSI and its aggressive response towards the support levels along the way. The EMA's are in support of the selling, but the 7-consecutive-day bearish streak needs may stop anytime on profit-taking by investors.
Nikkei – 4 Hours Outlook
For now, I'm seeing the potential support at $18960 along with a resistance at $19080 and $19225. From a trading perspective, it's quite risky to enter a sell position because the Index is badly oversold. Buying seems to be a good idea, but the dominated sellers are not letting me take any trade.
So let's wait for a clearer signal. It's better to be safe than sorry!