20 June 2018 (8:38 AM EDT)
During Asia session, Dow Jones futures had tumbled down by -300 points. Then the index changed trend and went up by 100 points’ lead. That is a 400 points movement within few hours and indicated high level of volatility.
U.S. stock futures have turned positive after a lower start and we can expect a positive, but volatile intraday trend in U.s. stock markets today.
Major U.S. stock indexes have been showing a mixed trading pattern. Dow Jones has been falling with big margins this week but other major indexes have show a “low opening, high closing” trend. This is clearly visible on charts where Nasdaq has been continuously making green candlesticks even though the numbers are red with negative margins.
Yesterday’s trading pattern showed similar green candlesticks for S&P 500 and Nasdaq, even though the closing numbers were negative/ red for these stock indexes. Russell 2000 got fed up of falling down with Dow Jones and kept climbing up through the session to close with minor gains.
Dow Jones is back in its previous trading range and has fallen below previous major resistance of 24,800. It still has support near 24,600.
The immediate trading range will bee between yesterday’s high and low levels. For other indexes, weekly range could apply but for Dow Jones, it seems difficult to cross above previous high and this mea index could remain range bound with a choppy trading pattern.
In last few sessions, U.S. stock markets have been opening low and then trading higher. So today’s high opening could very well turn into low trading in the second half. Day traders should wait till the opening volatility cools down and markets start making a clear trend-pattern. After that, follow that short term trend for intraday trading.