23 October 2018 (8:46 AM EDT)
Highly negative U.S. stock futures are indicating a very negative opening in U.S. stock markets today. But after that, the trend may turn rangebound and choppy due to technical factors.
Such deep gap down openings throw RSI indicator into highly oversold zone, which signals buyers to enter market, especially scalpers who start buying and this reverses the trend and sends price up.
Another technical factors that could support major U.S. stock indexes after a highly negative opening is their current range support levels. The opening losses will take major indexes near these range support levels and in this time and age of algo-trading, huge buying orders could be waiting near those levels which will be triggered and sent price back towards upper levels.
Dow Jones has this range support near 25,000. Nasdaq’s current such support is near 7,000 and S&P 500 has its own support near 2,710 mark.
A lower opening near support levels will create more choppiness and it is possible that U.S. stocks see a bounce back in initial trading. It will be better for day traders to wait till this opening volatility subsides and markets create a clear intraday trend which will be easier to follow and trade.
Intraday pivot levels given on our Pivot Trading page can help day traders in finding out which support levels prove stronger and which resistance levels stop major indexes from going higher. These levels are:
Expect a highly volatile and choppy trading session in U.S. stock markets today. The second half of today’s trading session and closing levels will provide clue as to which way U.S. stock markets will head now- remain rangebound or start a fresh wave of lower tend.
23 October 2018 (8:51 AM IST)
Yesterday, Indian stock markets had another negative day and Nifty had closed below 10,300, it major technical support level. Bank nifty had survived above its own support of 25,000 but today, negative global cues and surging dollar is expected to push Bank Nifty below its major support too.
Rupee is still trading below 74 and that may provide support to Bank Nifty after a gap down opening. However, day traders must remember that these markets are in strong downtrend and now even technical bounces have started become smaller.
Intraday pivot levels (available on our Pivot Trading page) can help day traders wait and see which levels are broken by a gap down opening (as indicated by highly negative SGX Nifty) and which levels can provide initial support to major indexes.
These intraday pivot levels are:
Expect a volatile but weak trend in Indian stock markets today. Rupee’s trading pattern may- or may not, affect Bank Nifty’s intraday trend. Day traders should wait for a recovery/ bounce after initial low opening and then trade with the trend which may continue to trade lower or turn rangebound.
23 October 2018 (8:51 AM IST)
22 October 2018 (11:21 PM EDT)
Dow Jones fell in the overnight session of U.S. stock markets and today, inn early Asia session, Dow Jones futures are down by nearly -200 points, sending world stock markets in a tailspin again.
At the time fo writing, all numbers in global stock markets are highly negative. U.S. and European stock futures, Asian stock markets and SGX nifty- all are trading down by big cuts.
The Dollar index has gone above 96, spelling trouble for emerging markets and their currencies.
Expect global stock markets to trade lower and follow the trend in U.S. stock futures. Markets may turn more volatile if U.S. futures improve later through the session. If those numbers continue to drop, then we will see another session of big losses across the board in world stock markets.
22 October 2018 (8:16 AM EDT)
U.S. stock futures are trading higher before the opening bell for a new week’s first session inn U.S. stock markets.
Dow Jones futures are nearly 100 points higher, indicating a jump up beginning of this new week after a positive closing for the last week. Nasdaq futures are higher by nearly 0.80% at the time of writing, indicating a positive opening but rangebound trading within last week’s range.
These higher futures are perhaps due to President Trump’s comments about a new tax-cut plan for the middle class, which he said, will be unveiled before the mid-term elections (November 6).
U.S. stock markets have been in a short term downtrend this month. But the last few sessions have seen technical support coming in, which is more clearly visible inn monthly charts of major indexes. This can keep U.S. stocks rangebound within last week’s high and low levels and keep markets highly volatile.
The reason for the current downtrend in U.S. stock markets has been problems of big tech companies. Those problem may intensify after the mid-term elections. So, till those elections are over, we’ll either see a sideways trading pattern in these markets, or the negative trend will return after a breather.
Day traders can check the intraday pivot levels (given one our Pivot Trading page) to see short term support and resistance levels for major stock indexes. These levels for different indexes are:
Any gap up or down opening triggers higher volatility in initial trading. That is why it is better for day traders to wait till this volatility subsides and a trend emerges in markets. Once markets indicate through that trend which way they intend to trade, just follow that trend till trend reversal signal appear. That will be the time for trade- exit and profit booking.
22 October 2018 (7:49 AM IST)
Last Friday, Indian stock markets saw a mixed trend where Bank Nifty showed strong support and hinted at a bounce from its current support levels, in spite of negative closing. Nifty traded with much weakness but closed above its current support of 10,300.
In Indian stock markets, Nifty is following global cues but Bank Nifty is reluctant to go much lower as rupee is finding support against dollar. So this banking sector index may trade within its last session/ week’s trading range.
For Nifty, global cues will be more important and if this index falls below 10,300, it may see more losses and the downtrend will continue in this index.
Day traders can take help of intraday pivot levels, given on our Pivot Trading page, to see where major indexes find support or resistance. For different indexes, these levels are:
Expect Indian stock markets to trade with choppiness and remain volatile. The intraday trend can be mixed in different indexes. Day traders should wait till markets are over the initial volatile trading phase and create a clear intraday trend. After that trade with that trend carefully. Markets can remain very volatile and can make sudden moves in any direction on global, local or technical cues.
22 October 2018 (7:49 AM IST)
21 October 2018 (10:19 PM EDT)
Last week, U.S. stock markets had closed near their current support levels indicating we may see some support this week. Dow Jones had created a positive weekly candlestick and the tech index Nasdaq also created a hammer like candlestick on weekly charts.
This could mean a support for U.S. stock markets this week and that would keep these markets rangebound within last week’s trading range. The second trend- possibility will be a breach in last week’s lower support and continuation of the current downtrend. Dow Jones futures are showing more losses at the time of writing but those numbers are equal to its gains in the previous session, so basically, the index futures can be considered flat at this hour. Nasdaq and S&P 500 futures are also showing only single digit losses currently.
World stock markets will follow the trend in U.S. stock markets so global stock markets will also face these tow possible trend-scenarios.
Right now, in Asia, China markets are rallying and are up by more than 3% gains. This has supported other Asian stock markets too and a mixed trend is seen in these markets. SGX Nifty is flat and has erased its last session’s overnight losses during U.S. session. This indicates a flat/ positive opening for Indian stock markets too. European stock futures are mixed and the Dollar index is rangebound, giving respite to smaller currencies.
Expect a volatile and mixed trend in world stock markets in this first session of the new week. The trend will be dominated by U.S. stock futures and any drop or gains in those numbers will affect the trend in other markets too.
Day traders should wait an watch what kind of trend develops in their local markets, then trade with that trend carefully.
19 October 2018 (8:37 AM EDT)
Although U.S. stock futures are trading positive at the time of writing and the opening bell in U.S. stock markets is still 45 minutes away, yesterday’s trading pattern in these markets indicates a highly volatile session today, where major indexes face the risk of falling below this week’s low levels.
In fact, Dow Jones did fell below its weekly low point yesterday, but recovered to close above that level. Today, if that level is breached again, then we may see more losses in this mega index and broader U.S. stock markets.
On the other hand, if major stock indexes trade positive, then the immediate trading range will be between yesterday’ high and low points. Intraday pivot levels for major stock index are available on our Pivot Trading page and day traders can use those levels to see which support and resistance levels dominate today’s trend. These levels are:
Like previous many sessions, U.S. stock markets will continue to trade in a highly volatile manner. U.S. stock futures too have been swinging between highly positive and negative numbers, hinting at a choppy intraday session. Day traders should trade cautiously and follow the trend with quick trade exit strategies.
19 October 2018 (8:40 AM IST)
Indian stock markets were closed yesterday the SGX Nifty fell with big cuts of -200 points when U.S. stock markets fell in last two sessions.
Today, SGX Nifty has recovered almost half of its losses but it still indicates a considerable lower opening in Indian stock markets today. Global cues are still weak and rupee is also trading with choppiness against dollar.
These factors can keep Indian stocks quite volatile as major stock indexes are expected to trade within last week’s major support and resistance levels. These intraday levels are given on our Pivot Trading page. Separate levels for major stock indexes are:
Expect Indian stock markets to trade with high volatility after a gap dow opening. Major stock indexes are trading near their technical support levels and that will increase the volatility. Day traders should trade cautiously and with stop losses in all their trades.
Wait for markets to settle after a lower opening and once a trend establishes, trade with that trend which, like U.S. stock markets, can either remain sideways in previous range or continue to trade down.
19 October 2018 (8:40 AM IST)
18 October 2018 (11:10 PM EDT)
World stock markets had opened with deep red numbers in Asia after U.S. stock markets closed with highly negative numbers in their overnight session.
But as U.S. stock futures turned positive, global stocks are also showing minor improvement at the time of writing. European stock futures are also trading positive after negative closing yesterday. Major Asian stock markets are trading mixed. SGX Nifty is down with deep cuts, indicating a choppy and mostly negative opening in Indian stock markets today.
Expect global stock markets to trade with choppiness and follow the intraday trend inn U.S. stock futures. The overall sentiment is negative as nobody can predict how U.S. stock markets will close before the weekend and that is why any recovery in global stocks cloud famine fragile.
Day traders should trade with the trend in their local index. Intraday volatility may remain high like previous many sessions.
18 October 2018 (8:45 AM EDT)
Although U.S. stock futures are trading considerably lower at the time of writing, U.S. stock markets are expected to trade within this week’s high and low level with the unusual volatility that has engulfed these markets since last week.
On Tuesday, U.S. stocks had rallied and recovered some lost points from previous week’s steep downtrend. That has created a positive candlestick for this week. Also, yesterday major indexes rose from their day’s low levels and closed near their opening levels.
Therefore, technically we can assume that these markets will trade within last two sessions’ trading range. Right now, the trend has turned sideways within weekly levels. However, currently it is uncertain if U.S. stock markets will follow “usual” trading patterns or rules and the possibility of returning to previous downtrend will continue to hover over markets.
Day traders can find intraday pivot levels helpful in judging market-trend, as these levels can indicate if major indexes are finding more support or facing more resistance. We have given these pivot levels on our Pivot Trading page. For different stock indexes, these levels are:
Expect a choppy and rangebound intraday trend in U.S. stock markets today. Major indexes will either remain sideways within previous two session’s trading range, or may continue to trade negative towards lower levels.