17 August 2018 (8:54 AM EDT)
U.S. stock futures have been trading slightly negative in this session, indicating that major stock indexes will most probably open within their yesterday’s trading range.
This will also keep their immediate trading range within previous high and low levels. Once again, we will see the same support and resistance levels in play that had dominate markets yesterday- or in sessions before that. Hourly charts will still provide good indication of minor support and resistance levels.
In news making stocks, Tesla (Nasdaq: TSLA) will be in focus after CEO Elon Musk’s “tearful” interview to the New York Times and reports that the Securities & Exchange Commission (SEC) is investigating Musk’s market-moving tweet about plans of taking Tesla private. There are also reports that the company board is actively looking for a number-two executive to relive Musk from some of his responsibilities.
Tesla stock had fallen nearly 1% yesterday and today, in pre-market trading, the stock is down -3.41%.
As we had written about Nasdaq earlier, the tech index had already created a negative candlestick yesterday, even thought the index closed positive yesterday, and today’s lower opening will keep the index under pressure.
Dow Jones had a huge short covering rally yesterday and will remain rangebound within that previous range.
Day traders can keep an eye on this week’s minor support and resistance levels on 4-hours and hourly charts and trade with the short term trend within those levels. Markets may remain choppy and volatile in this session, as rangebound trend usually happens to be.