Over the previous week, the US equities plunged massively, especially on Tuesday. This was due to the heavy sell-off in technology shares, which led the S&P 500 index to finish down 0.6%.

Although the market gained on Friday, the gain wasn't enough to recover the earlier losses. Yet the CBOE Volatility Index, which measures the market fear, is trading lower at 11.18, down -2.27% today. This signifies a return of investor confidence.    

At the moment, investors are likely taking only short term positions before the release of NFP & FOMC later this week. The idea is to avoid unexpected volatility. Let's take a look at the weekly trading levels for the Non-farm payroll week.

S&P 500 – SPX500- Trading Levels

Support            Resistance

S1: 2417             R1: 2430

S2: 2404            R2: 2441

S3: 2392            R3: 2449

DJIA – US30 – Trading Levels

Support                     Resistance            

S1: 21309.28           R1: 21390.75

S2: 21263.70           R2: 21454.56

S3: 21186.86           R3: 21500.27

We are likely to experience thin trading volume and volatility in the first two days of the week. US banks will be closed in observance of Independence Day on Tuesday. However, Wednesday will likely give us good trading opportunities.