Stock markets take a tumble – The next support and buy level?

💡 DMK Insight

Emini S&P futures just breached key support at 6910, and here’s why that matters: Breaking below 6910 opens the door to further downside, with 6860 as the next significant support level. Traders should be cautious as this move could trigger stop-loss orders, leading to increased volatility. If we see sustained trading below 6860, it could signal a shift in market sentiment, potentially inviting more sellers into the mix. This level is crucial not just for Emini S&P but could also impact correlated assets like the Nasdaq futures, which often follow similar patterns. Keep an eye on volume; if we see heavy selling, it could indicate a more profound bearish trend. On the flip side, if the market manages to reclaim 6910, it could suggest a false breakdown, leading to a potential rebound. Watch for a close above this level on a daily chart for signs of recovery. For now, traders should monitor these levels closely and prepare for possible volatility as the market reacts to this breakdown.