US stock markets are experiencing significant fluctuations. Emini S&P Futures fell below 6747, aiming for support levels around 6700/6690, but found strong backing at 6680/6670. After dipping to 6656, they bounced back with a 100-point increase to 6765. For Emini Nasdaq Futures, there was strong support at 25050/24950, which allowed for a rebound. They reached the first target of 25250/300, closing close to 25228. Resistance is critical at 25300/25400; if this is not surpassed, a drop to 25100/25000 could occur. However, a breakthrough above 25450 would indicate more potential gains.

Emini Dow Jones Futures

Emini Dow Jones Futures approached solid support at 46500/46400 but just missed a buying chance, hitting a low of 46574. Resistance looms at 47150/47300, with a break above 47350 suggesting an upward trend could emerge. Traders should stay cautious, as all investments come with risk. Meanwhile, unrelated financial insights continue to highlight trends across various global markets and currencies. In the Emini S&P futures, we found the buying opportunities we expected, marked by a sharp 100-point recovery from the 6670 support zone. The Volatility Index (VIX), which spiked above 25 during last week’s sell-off, has now dipped below 18, indicating immediate panic has eased. Currently, we face resistance at 6770/80; breaking above 6790 would signal a buy, confirming the next upward movement. Nasdaq futures also stabilized near 25,000, marking it as a crucial level for bulls to defend. With the market factoring in over an 80% chance of a Fed rate cut in December, tech and growth stocks are gaining interest again. The next challenge is to overcome resistance at 25,300/25,400; moving past 25,450 should pave the way toward 25,700.

Dow Shows Notable Strength

The Dow demonstrated notable strength by rising before even testing the key support area of 46,500/46,400. This indicates that value and industrial sectors managed well during the pullback and could be set for a strong year-end finish. The primary hurdle remains breaking through resistance at the 47,150/47,300 zone, which would show that bulls are back in command. This market recovery is supported by the latest economic data, indicating the “soft landing” scenario we’ve been expecting. Last week’s October Consumer Price Index report revealed inflation cooling to a year-over-year rate of 2.9%, while the jobs report showed a slowing yet still positive labor market, with 160,000 jobs added. These numbers give the Federal Reserve a clear path to start easing policy. We have seen this pattern before, particularly in late 2023, when anticipation of a Fed pivot from rate hikes sparked a strong year-end rally. Derivative traders should prepare for a similar trend as we move through November and into December. Any dips toward recent lows should be seen as buying opportunities unless the S&P decisively breaks below 6650. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now