Dow Jones 30
The Dow Jones 30 initially rally during the session on Monday but found the 24,000 level to be a bit too resistive. We pulled back a bit from there, and it looks as if the stock markets are struggling to keep gains. Because of this, I think that the markets will continue to be very skittish in general, as there are several concerns around the world that traders will be focusing on. Not the least of these concerns will be the trade talks between the US and China that are going on behind the scenes. I think the next move will be dictated by that. However, it does look as if there is a lot of skittish behavior out there. I would be very cautious about my position size. If we break down below the 23,500 level, the market should then go down to the 23,000 level. Otherwise, if we break above the 24,000 level, I think that will go towards the 25,000 level.
NASDAQ 100
The NASDAQ 100 rallied initially during the trading session on Monday but rolled over a bit as the 6650 level offered a bit of resistance. I believe that if we can break above the 6700 level, then it’s time to start buying. If we break down below the 6500 level, the market then unwinds towards the 6300 level. I believe that the NASDAQ 100 could lead the way, as it typically does, but with the massive amounts of volatility that we have seen, with the market really needs is a couple of days of karma trading.