Major Support Under Siege in US Markets

US markets are now resting on major support following another sharp sell-off last night.

Have we finally reached the moment when selling overwhelms buyers and the correction accelerates?

We have been warning you for over a month about the prospect of a correction.

Last week, Charlie and I discussed the possibility that volatility could explode after the triple witching hour.

The Iran war is causing widespread angst around the world as fuel and fertiliser become scarce.

There’s no doubt this is an explosive situation.

I’m sure Trump is feeling the pressure, but perhaps what we need to see is a serious swan dive in markets before Trump bites the bullet and wraps things up.

So, we may see a repeat of the tariff tantrum with markets falling rapidly and then bouncing just as quickly as Trump changes course.

That means as a trader, I’m not only focused on the prospect of markets getting hammered in the immediate future, but I’m also building a list of stocks I want to buy if things change rapidly.

I don’t really care what the market does. I just want to make sure I am listening closely and prepared to act when the time comes.

I don’t have a strong view one way or the other, most of the time, because I think that can get in the way of your objective judgment.

We know we don’t know the future. But sometimes you can get a sense of what the immediate future holds from the charts.

It’s like driving on a country road at night in heavy fog. You can still get where you want to go, but you haven’t got a clue what’s more than 20 metres in front of you.

So if markets change, I’ll happily change right along with them. The goal isn’t to work out the future. The goal is to manage the fact that you don’t know by managing risk effectively.

Right now, the charts are signalling that we could see selling accelerate. So Trump had better whip out his phone and start typing more about how much the Iranians want to make a deal.

As Charlie and I point out in today’s video, the market isn’t just worried about Iran. The selling in software stocks continues, and private credit is copping a beating too.

To give you a comprehensive understanding of how on-edge markets are right now, Charlie and I look at oil, US stock indices, US bonds, Tech heavyweights, software ETF’s, and private credit firms.

This is a bumper issue of Closing Bell because there is so much going on. So we hope you enjoy it, and be sure to give us a ‘like’ on YouTube if our analysis has helped you manage the volatility.