US100 drops 1.5%⏬⏬

💡Triple Witching' Day raises volatility in markets and leads to profit-taking after recent gains

The second part of today's session on international financial markets brings a deterioration in sentiment among investors, who, shortly after the start of the session on Wall Street, became more willing to sell their shares ahead of the weekend. 

Today's declines in US stock indices are largely due to the so-called "Triple Witching' Day", which is associated with the expiry process of futures and options contracts in the financial markets. Historically, these periods have brought heightened volatility to the markets, and given that the scale of this process amounts to $4 trillion, it further reinforces the chaotic picture of today's session. 

It is worth remembering that there was a rollover on the US100 yesterday, which amounted to around 1%. In addition to this, the contract gained around 0.8%, leading to a test of the 15700 point level. From this level, we have seen strong declines today, which have already reached 1.5% on the contract. The US100 is approaching the important level of 15400, at which there have previously been multiple price reactions. In view of this, it is possible that the declines associated with a technical day such as Triple Witching' Day will end at this level. However, if a breakout occurs, the next key support zone is 15200-15300 points. Next week, the Fed decision on Wednesday at 07:00 pm BST, which will certainly lead to additional volatility in the market. 

Source: xStation 5