Futures steady after sharp tumble on Wall Street

U.S. stock index futures

NASDAQ 100 is trading down 3.75% at 13319.38

U.S. stock index futures stabilized on Tuesday, after a steep sell-off on Wall Street in the previous session as investors assessed the impact of a spike in oil prices and Western sanctions on Russia over its invasion of Ukraine.

The Nasdaq on Monday ended down 20.1% from its Nov. 19 record high close, confirming the tech-heavy index has been in a bear market since hitting that record high, according to a widely used definition.

The Dow confirmed it was in a correction from its Jan. 4 all-time closing peak. A correction is confirmed when an index closes 10% or more below its record closing level.

Meanwhile, the benchmark S&P 500 index lost $1.08 trillion on Monday, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, as investors worried over soaring crude prices on a possible ban of Russian oil imports fuelling higher inflation.

Travel and leisure stocks, among the hardest hit in the previous session’s plummet, led the rebound in premarket trading. United Airlines Holdings (NASDAQ:UAL) Inc and Carnival (NYSE:CUK) Corp rose 2.4% and 3.7%, respectively.

Oil and gas producers extended a recent rally. Marathon Oil Corp (NYSE:MRO) added 1.1% to lead the gains. The S&P 500 energy sector has climbed 36.9% so far this year, the best performing sector.

On technical fronts NASDAQ 100 RSI stood at 46.00 and currently it is trading below all MA. So, SELL position can be taken with following target and stoploss:

TRADE SIGNAL – : NASDAQ 100 – SELL: 13360.00, TARGET: 13263.60, STOP LOSS : 13542.00

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