Dow Jones contract for September delivery is heading into US session on Tuesday firmly in red, following day’s start with gap lower after rising geopolitical tensions prompted investors from riskier assets. Fresh weakness on Tuesday generated direction signal after triple Doji on daily chart signaled strong indecision. Rising 55SMA (currently at 21621) which contained previous attempt lower comes under pressure again. Break below is needed to confirm lower platform at 21985 and expose next strong supports at 21499 (Fibo 38.2% of 20477/22131 upleg) and 21457 (top of rising daily cloud). Strong bearish sentiment is supported by negative setup of daily studies, as bearish momentum is building up and indicators heading south. Formation of Tenkan-sen/ Kijun-sen bear-cross is reinforcing negative near-term outlook. Bearish pressure is expected to persist while today’s gap remains unfilled.
Res: 21727; 21800; 21895; 21921
Sup: 21621; 21580; 21499; 21457
