US Stock Markets Today: Range Bound, Volatile Intraday Trend

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.



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Indian Stock Markets Today: Volatile Near Support Levels

20 June 2018 (8:00 AM IST)

Indian stock markets may see a mixed and volatile trading pattern, since Nifty closed yesterday near its 20-Day Moving Average,10,700.

This has been very strong technical support for Nifty and yesterday, the index survived closing below this level.

Today, SGX Nifty is trading flat, waiting to see how Nifty trades.

Bank Nifty fell  and closed below its own 20-Day MA of 26,400 in previous session. This banking sector index tried to hold on to another support of 26,300 but finally that support was also breached.

This means today, the intraday trend can be highly volatile if Nifty tries to ignore big decline in U.S. stock markets and tries to stay above its current support levels.

The intraday trend in Indian stock markets can either be negative, following the drop in U.S. stock futures, or range bound between previous session’s trading range.

Nifty’s intraday pivot will be at 10,733. Lower support levels are 10,677- 10,645-10,589 and resistance levels will be near 10,766-10,821- 10,854.

Day traders should continue to wait and observe what kid of trend develops in Nifty and in broader markets. before starting their trading. Market volatility may remain high.

Intraday support and resistance levels are given on our Pivot Trading page. Take help of those levels for your intraday trading.

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World Stock Markets Today: Mixed Trend on Trade War Repurcussions

20 June 2018 (8:00 AM IST)

19 June 2018 (10:33 PM EDT)

After initial knee-jerk reaction yesterday, most of the Asian stock markets are trading positive today, drooling over business opportunities coming their way as a result of the U.S.-China trade war.

U.S. stock futures are heavily down again on the same trade war worries, which will be bad for their business. Dow Jones futures are down by nearly -300 points in early trade.

European stock futures are also negative but only in double digits.

SGX Nifty is flat, confused between these two different trends and unable to decide whether it should drop with U.S. stock markets or trade higher with Asian stock markets. That means Indian stock markets will have to decide on their ow trend.

Expect this mixed trend to continue in world stock markets as Asia is worry-free, except for China. European stock markets still face worries of German political instability and U.S> stock markets are facing double whammy of European problems and their own trade war with China.

Indian stock markets are purely trading on technicals and whims of speculators.

Day traders can now focus on there local trend and trade with the intraday trend in their local index. Global cues are mixed but a bigger decline in U.S. stock futures could still dampen the mood in global stocks.

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US Stock Markets Today: Highly Negative Open, Dow To Fall Back in Previous Range

19 June 2018 (9:07 AM EDT)

Earlier in the session, Dow Jones future and fallen -400 points, indicating storms selling pressure.

At the time of writing, those futures numbers are still down by nearly -350 points, indicating a highly negative open today in U.S. stock markets and Dow Jones is expected to fall back within its previous range where 24,600 was once a strong resistance level for the index.

Today’s gap down opening will also break the weekly trend line in Dow Jones. Obviously, that will be a negative signal for this mega index.

Other U.S. index futures are also down with deep cuts. European markets have continued their highly negative trend.

As this trend is triggered by geopolitical causes, it may continue for some time.

After a big gap down opening, usually stock markets recover and mostly turn range bound. But today’s low opening is being triggered by geopolitical tensions of U.S.-China trade war, so it is difficult to say if U.S. stock indexes will recover later in the session or the decline will continue.

Day traders will have to wait and watch long term fibonacci levels for trade entry points and support levels after initial volatility subsides.

In such event-driven store trend, levels usually do not provide much indication of the trend, but log term Moving Averages can give good hint of where to buy on a bounce or sell at a pull back.

For example, Dow Jones is expected to open near its 100-Day MA on daily charts, which can provide support to the indexes. If support comes, then it will rise higher and face resistance near 50-Day MA. However, if 100-Day MA fails to provide support to the index, then it will trade down towards 200-Day MA and will trade between these two technical indicators.

Watch such long term indicators and wait for an intraday trend pattern to emerge, then trade with that trend.

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Indian Stock Markets Today: Nifty Strong Near Support Levels

19 June 2018 (9:23 AM IST)

Indian stock markets have expectedly opened lower, but not as low as SGX Nifty has been trading.

That shows that Nifty continues to hold above its store support levels of 10,750- 10,700. As long as these support levels are intact, Nifty will remain in its current uptrend.

Bank Nifty has also been trying to hold its support level of 26,300 in recent sessions, and this support will be crucial for Bank Nifty today. In past many sessions, both these indexes had bounced back from their current support levels and day traders should watch for that support today also.

Global cues are negative but U.S. stock markets have also shown a tendency in last few sessions of opening lower but recovering to close higher.

That trend may stop a bigger global slide and Indian stock markets may also trade in a simile manner.

Nifty’s intraday pivot is at 10,805 and just like yesterday, this pivot level may act as support or resistance for the index. Nifty’s intraday support levels are 10,781- 10,762-10,738 and resistance is expected near 10,824-10,848- 10,867.  Although these levels become useless after a gap down opening, but still keep an eye on these levels and see if Nifty succeeds in crossing above any if these. If that happens, then that level could turn into a support. However, if Nifty turns down from any of these levels, then that levels will act as a resistance.

Day traders should always wait after a gap down opening to let the market volatility subside and once a intraday trend emerges, then only start trading with that trend.

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World Stock Markets Today: Deeply Negative Open on Trade Worries

19 June 2018 (8:23 AM IST)

18 June 2018 (10:46 PM EDT)

As is obvious by deeply negative U.S. and European stock futures, global stock markets are in for a negative start and volatile session.

Yesterday, its was political stalemate in Germany which caused a fall in these bigger markets. Today, its another round of U.S.-China trade war threat that is causing a lung in futures of these big markets.

Other global stock markets are just sulking in the red, irritated by these “local” problems of big markets creating headaches for global stocks even though the global economy is thriving now.

Asian stock markets are trading mixed because, as we have seen last time, some major Asian economies will benefit from U.S.- China trade war so those markets will go up when these worries flare up.

This economic support has helped U.S. stock markets in last two sessions from lower opening  to bounce up and recover much of their losses by the closing time.

At this hour, both European and U.S. stock futures are highly negative but from such depths, markets can only ago up. That is why today’s session could be highly volatile through the trading hours.

Right now, the trend has become of gap down opening then recovery from lower support levels. So, day traders should wait after the opening bell, watch for the recovery to come and then trade with the rising trend. A gap down opening wipes out chances of trading with a downtrend so day traders will get smaller chances of selling but bigger trades in upward direction.

However, swing traders make good profits by short selling in such conditions their trades run for many hours/ days and gap down openings bring excellent profits for them.

Expect global stock markets to remain under pressure but have volatile intraday trading pattern. Major fibonacci levels will become important as markets will seek support or face resistance near these levels.

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US Stock Markets Today: Under Pressure on Germany’s Political Worries

18 June 2018 (8:02 AM EDT)

German index DAX had crashed by more than -200 points in this first session of the week, on worries of a political instability and that the German Chancellor Angela Merkel may have to leave her post after difference within the ruling coalition government.

Angela Merkel’s Christian Democratic Union had failed to garner full majority in last elections and had formed a coalition government with the support of Christian Social Union (CSU) party. Now, CSU in threatening to withdraw it support to Merkel on her immigration polices. Citing various sources,, a CNBC.com reports said, that these differences  could  force Angela Merkel to leave office “within weeks.” 

This is why German markets are crashing today, dragging down other European markets and U.S. stock futures along with.

So now, U.S. stock markets are facing a new problem and this could keep these markets and European markets quite volatile in coming days or weeks.

U.S. stock futures are trading highly negative at the time of writing. Futures of Dow Jones are down by -200 points at this time. This would mean an opening near its another support level of 24,800 for this index. After a low opening, this mega index an broader U.S. stock markets will either in a narrow range near opening levels, or decline further.

If there are any reports off reconciliation in German political parties- either today or in days to come, that can work like a huge relief and U.S. and European stock markets will then recover from these levels.

Right now, its a downtrend in European stocks and U.S. stocks are also expected to trade in a subdued manner, at least initially.

In their last session, U.S. stock markets had seen a lower opening but then, buying support helped major indexes in recovering their initial losses. Today, day traders should wait and watch for any such support and then trade with the trend.

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Indian Stock Markets Today: Nifty Range Bound Near Support Level

18 June 2018 (8:29 AM IST)

Indian stock markets have been completely trading on technical trends/ patterns recently.

Those patterns indicate that Nifty is in an uptrend and in its last session, the index had found strong support near 10,750, which kept it range bound.

Bank Nifty had closed near its 20-Day Moving Average on daily charts, near 26,400 and if this index falls below this level, and stays below 26,400- then more losses can be expected in this banking sector index.

SGX Nifty is still some 30-points lower, but range bound, waiting for Nifty to open and decide its trend.

If Nifty opens lower, it will be range bound till last sessions’ low level is intact. Only if and when Nifty falls below 10,750, one can expect this index to go down to its next support of 10,700.

Similarly, Bank Nifty has support near  26,296 and day traders should watch for signs of recovery near this level if Indian stock markets open lower.

That makes tow things clear for Indian stock markets today-(1) If any index falls below its previous support level-and stays below that level, then it will see more losses. (2) If any index trades above its pivot level then it will exhibit support and could try to reach higher levels.

The only way to know what will happen, is to wait and let markets create a trend.

Nifty’s intraday pivot is at 10,802. Its support levels are near 10,770- 10,723-10,692 and resistance levels are near 10,849-10,880- 10,927.

Watch these levels and follow the trend that develops near any of these levels, after market volatility cools down.

Pivot levels of major India stock indexes are available on our Pivot Trading page. Take help off those levels to check intraday support and resistance level in Nifty, Bank Nifty, Sensex etc and trade with the trend.

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World Stock Markets Today: Low Opening, Trading in Previous Range

18 June 2018 (8:29 AM IST)

17 June 2018 (10:59 PM EDT)

Let’s first take a look at how U.S. stock markets trade in their last session, then it will becomes clear how world stock markets are trading today.

U.S. stock markets fell in their early hours on Friday last, but just as we had written in our post that day, major U.S. indexes bounced back from their major support levels and erased most of the losses before the closing bell. Dow Jones found strong  support near 24,900 and closed above another support of 25,000. Nasdaq kept climbing up after a low opening and created a green candlestick on charts which opened low but closed much higher that those opening levels.

Today, U.S. stock futures are trading highly negative but given the trading pattern in their previous session, these futures are still within the trading range of Friday’s range.

The same trading pattern is being repeated in SGX Nifty, the future index of Indian index Nifty. SGX Nifty opened much lower, but then recovered from those levels and is now rage bound near day’s high level, although still in the red.

All major Asian stocks are trading negative. European stock futures are also trading negative.

So, at the time of writing it is “lower opening, range bound trading” pattern in world stock markets. Later in the day, it can either improve from here- if U.S. stock future improve their numbers, or fell down some more if those futures decline further.

For day traders, it will be wise to watch only their local index and follow its short term trend. Markets can be highly volatile just like previous many sessions. Major support and resistance levels will still dominate the intraday trading pattern.

Day traders should watch those patterns near intraday support (bounce back) and resistance levels (trend reversal) and trade accordingly.

 

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US Stock Markets Today: Low Opening, Range Bound Trend

15 June 2018 (9:06 AM EDT)

U.S. stock futures have crashed on U.S.-China imposing 25% tariff on some goods of each-other.

For day traders in U.S. stock  markets, the more important thing will be the intraday trend  in these markets after a low opening.

Going by current low futures numbers, major U.S. stock indexes will open near their second intraday support level and the initial trading will happen between 2nd and 3rd intraday support levels. (Find these levels on our Pivot Trading page).

For example, Dow Joes has second support near 25,000 and thirds support near 24,900. this index had closed at 25,175 yesterday and today, its futures are lower by nearly -200 points. So, an opening near its major support of 25,000 will ensure initial volatility and range bound trading pattern near those levels.

Nasdaq had rallied 74 points yesterday and today, its futures are down by nearly -36 points. That means the index will still open with considerable gains remaining from yesterday’s rally.

Nasdaq and Russell 2000 and in an uptrend and an uptrend triggers buying on dips. So, most probably, these two indexes will see support near their intraday pivot or support levels.

Expect U.S. stock markets to trade with choppiness in early trading. Day traders should wait to see if any support comes in after a gap down opening. If  that happens, then U.S. stock markets will trade within their intraday, smaller range.

so, wait, watch and let markets swing in early trading. Once markets settle and an intraday trend becomes visible, trade with that trend.

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