US Markets fall as Greenland tensions flare – Stock Markets closed for MLK Day

Ben Graham · 3 horas atrás

American traders are off today, and it would be easier on them if they were the only ones trading US products (like Canada, for example).

Unfortunately, the entire world is trading and selling US products even when traditional markets are closed. That's what it is to represent the global reserve currency.

After this weekend's renewed Trump-induced volatility, US assets are falling off a cliff, and for not unjustified reasons.

The US President repeated his threats to purchase Greenland for national security, prompting EU leaders to plan an emergency meeting outside the freshly began Davos World Economic Forum (WEF).

Threats include not only additional 10% tariffs on major EU partners (including Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland), but also a significant compromise to the NATO alliance.

On that aspect, US President Trump and EU President Von Der Leyen haven't planned any meeting during the WEF, a first.

US stock Futures, which are trading, albeit on thinner volumes, are getting sold off aggressively, and this isn't helping the US dollar or US Treasuries, which are also getting rejected, pricing in more US risk premium. Stock Markets are closed today in celebration of Martin Luther King Day.

Gold and Silver, on the other hand, have gapped higher to new all-time highs.

Will this be another TACO? Time will tell, but the US president sure is unpredictable.

It could also be a distraction for the ongoing military movements in the Middle East regarding Iran, but it is just a theory for now.

Let's take a look at the Dow Jones, Gold, and the US Dollar to spot where things are to start this already volatile week.

Discover

A look at US Index Futures

US Index futures 1901 — US Index Futures Daily Performance – Courtesy of Finviz

Despite the Stock Market closure for MLK Day in the US, Index Futures are getting sold off quite harshly since the Globex Open.

Higher-Beta Nasdaq futures are getting hit the strongest, down 1.60% at its trough.

Dow Jones 4H Chart

dow jones 1901 — Dow Jones (CFD) 4H Chart – January 19, 2026 – Source: TradingView

The Dow (and all other US Indexes) suffered from the news, gapping down harshly at the Sunday open and struggling to form a meaningful bounce.

Having broken its short-term momentum area and testing its higher timeframe pivotal support (48,800 to 48,900), the price action is getting close to bearish territory.

Consolidating at the session lows opens the chances of a Pivot break, taking the action to a bearish outlook
- Depending on what news follow, sellers can easily break the 48,300 Support for a quick test of 48,000. More on this as Stock Markets reopen in the US.

Dow Jones technical levels for trading:

Resistance Levels

Short-term Pivot 49,200 to 49,300 and 4H 50-MA
49,650 to 49,670 Current ATH Resistance
All-time Highs 49,710
50,000 Potential Psychological Resistance

Support Levels

session lows 48,895
48,800 to 48,900 Pivotal Support and November Channel Lows
Psychological Support at 48,000
45,000 psychological level (Main Support on higher timeframe)

US Dollar 4H Chart

DXY 1901 — US Dollar Index (DXY) 4H Chart – January 19, 2026 – Source: TradingView

After pointing toward some imminent weakness, the US dollar formed a quick turn to the downside, rejecting its 99.50 Pivot Area.

Now trading below, the price action is turning bearish, particularly backed by its Upward Channel break and formation of a downtrend. The 4H RSI also confirms a now bearish action.

The 98.50 Support is a weak one, nevertheless, check out the reactions around current trading levels to spot if bears manage a push below the 4H 50-MA (99.00).

Breaking it should test the 98.00 Support – Look for trade which express such views in FX Major pairs.

Levels of interest for the Dollar Index:

Resistance Levels

99.40 to 99.50 Key Pivot
2026 Highs 99.49
100.00 to 100.50 Main Resistance Zone
100.376 November highs

Support Levels

99.00 4H 50-MA (testing)
98.50 to 98.80 Intraday Pivot Zone
98.00 Key support (+/- 100 pips)
97.40 to 97.80 August Range Support
2025 Lows 96.40 to 96.80 Support

Gold 4H Chart

gold 4h 1901 — XAU/USD (Gold) 4H Chart – January 19, 2026 – Source: TradingView

Gold gapped higher by 1.24% at the Sunday evening open, which then saw an explosion to $4,691, session and all-time high.

The price action is now consolidating above around the $4,670 zone, upper bound of the Fib-Induced resistance.

As mentioned in our past week analysis, despite the gaps higher to start the week, Metals are forming some profit-taking price action patterns with their momentum slowing down – Their start to 2026 really was fast-paced.

Momentum should pick-up if bulls push prices above $4,700.
If not, short-term dip-buyers can look at a test of the 4H 50-period Moving Average.
Below this, the price action gets more bearish and would point to a larger correction.

Levels to watch for Gold (XAU/USD) trading:

Resistance Levels

$4,691 Current session and all-time High
Potential Resistance 2 $4,700 to $4,720
Top of Daily Channel and Psychological Level $5,000

Support Levels

4H 50-MA $4,566
Previous ATH Pivot (as Support) $4,500 to $4,550
Major Intraday Support $4,400 and 200 MA
December 31 Mini-Support Support $4,280
Weekly Major Pivot $3,950 to $4,000

Safe Trades!

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