10 December 2018 (8:05 am EST)
US Stock futures have turned positive after trading highly negative through the global session. This indicates a choppy session ahead for US stock markets.
There is still more than an hour to go for the opening bell in these markets and the trend in futures can change during that time. Based on those numbers, the opening in U.S. stock markets can be positive or negative.
If these markets open positive, then trading range will remain within last session’s high and low numbers and U.S. stocks will be considered in a sideways intraday trend.
However, if markets turn negative, then it will provide strength to last session’s downtrend and U.S. stock markets will see a rough session with selling pressure dominating the intraday trend. Closing levels of major indexes will be more important that how markets open today.
For day traders, we have provided pivot levels of major stock indexes on our Pivot Trading page. These levels will help identify intraday support and resistance levels. For major indexes, these levels are:
- Pivot Levels for Dow Jones
- Pivot Levels for Nasdaq 100
- Pivot Levels for Russell 2000
- Pivot Levels for S& P 500
For day trading, it would be better to wait and let markets recover from opening volatility create an intraday trend. Then just follow that trend.
All those geopolitical factors that had kept U.S. stock futures lower in early trading are still intact. That is why there is no certainty how long the positive indication will last in markets. It will be better strategy to sell from higher (resistance) levels in such volatile market conditions.