19 September 2018 (8:43 AM EDT)
There is still nearly an hour to go before U.S. stock markets start their session today, but U.s. stock futures have turned slightly negative, indicating a rangebound trading pattern after yesterday’s higher intraday trend.
Nasdaq futures are showing more weakness and Amazon, Facebook, Tesla, Microsoft, Apple are trading negative in pre-opne trading. This tech index is suspiciously making “lower high” pattern on technical charts, although its support line is still intact. But this kind of trading pattern indicates inherent weakness in Nasdaq.
Dow Jones, on the other hand, has been trending in a consistent uptrend. But on monthly charts, this mega index is near its range top and its trend can go in either direction from here- either a positive breakout, or a double top resulting in a trend reversal.
Those possibilities remain in future. Currently, it seems U.S. stock markets will trade with choppiness in opening session. After markets stabilize, the intraday trend will either remain sideways within previous trading range, or U.S. stocks will resume their previous sessions’ uptrend.
Day traders can use pivot levels (given on our Pivot Trading page) to see which way markets are moving. Major indexes that trade above their pivot level will have positive bias while those trading below this level will be under selling pressure. These levels for major stock indexes are:
- Pivot Levels for Dow Jones
- Pivot Levels for Nasdaq 100
- Pivot Levels for Russell 2000
- Pivot Levels for S& P 500
The best way to start intraday trading is to wait and let markets establish a clear trend, then just trade with that trend.