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LIVE MARKETS-U.S. stocks poised to plunge

Fri, 26th Nov 2021 14:05

* U.S. equity index futures sharply lower; small caps down
>3%

* Euro STOXX 600 index falls nearly 3%

* Dollar down; gold up; crude, bitcoin slide

* U.S. 10-Year Treasury yield collapses to ~1.53%

Nov 26 - Welcome to the home for real-time coverage of
markets brought to you by Reuters reporters. You can share your
thoughts with us at markets.research@thomsonreuters.com

U.S. STOCKS POISED TO PLUNGE (0900 EST/1400 GMT)

U.S. equity index futures are sliding on Friday, with
travel, bank and commodity-linked stocks bearing the brunt of
the selloff, as the discovery of a new and possibly
vaccine-resistant coronavirus variant, spooked investors ahead
of a short trading session.

Of note, over the past 10 years, the day after Thanksgiving
has been relatively quiet. On average, the Dow Jones Industrial
Average has opened down around 0.05% and ended the day
with a 0.05% gain. Over this period, the DJI's range on that
Friday as a percentage of the prior trading day's close has
averaged only around 0.6%.

As stands, the CBOE Market Volatility Index has
popped to a more than two-month high, and CBT e-mini Dow Futures
are suggesting the Dow will plunge more than 2% in the
early throes of this Black-Friday session. And at
more than 3%, the Dow Futures' range so far today as a
percentage of Wednesday's close is its biggest since early
January.

All of this is occurring in the wake of pronounced technical
deterioration across the market. Click here:

Thus, based on the futures' action, the DJI's 50-day moving
average (DMA), which ended Wednesday around 35,260, can quickly
come under pressure. The Dow has not closed below this
intermediate-term moving average since October 13:

The DJI's 200-DMA ended Wednesday around 34,300. The
blue-chip average has not closed below this long-term moving
average since July 13, 2020.

A key support line resides around 34,000. Click here:

Here is your premarket snapshot:

(Terence Gabriel)

*****

FOR FRIDAY'S LIVE MARKETS' POSTS PRIOR TO 0900 EST/1400 GMT
- CLICK HERE:

(Terence Gabriel is a Reuters market analyst. The views
expressed are his own)

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