19 July 2019 (8:47 am EDT)
Yesterday, US stock markets had a highly volatile session, swinging wildly on the Fed’s rate cut hopes.
But those were false hopes and market’s assumption of 50 basis points cut in the Federal Reserve’s meeting this month was absurd, if nothing else. Central banks don’t take such drastic steps on market-whims, especially when the US economy is doing so well.
Related Post: World Stock Markets Rise on Fed Rate Cut Hopes
Yesterday’s wild swing in US stock markets also tells one more thing, when it comes to trading; traders (big and small) are all prone to being foolishly hopeful. Small traders like us dream of markets trending every day and giving us huge profits in every session and big traders dream of central banks cutting their lending rates like chopping wood for the fireplace! But, neither markets trend every day nor central banks cut their lending rates so drastically now and then.
So today, day traders should be careful about believing in a repetition of yesterday’s rise in US stock markets from intraday bottom levels. US stock futures are still trading highly positive. Dow Jones futures are up by nearly 100 points, indicating a positive opening in this mega index and broader US stock markets. However, the intraday trend could remain rangebound and volatile just like the previous session.
Dow Jones now has a new support level of 27,000 and yesterday it bounced back from close to this level. That also creates a new trading range for this and other major indexes. Day traders can find the intraday range level for these indexes on our Pivot Trading page. These level are:
- Pivot Levels for Dow Jones
- Pivot Levels for Nasdaq 100
- Pivot Levels for Russell 2000
- Pivot Levels for S& P 500
Expect US stock markets to trade within the last 5 sessions’ trading range. Yesterday’s last candlestick on 5-hour charts will indicate today’s opening trading range. Watch the range levels, wait for markets to create a clear trend, then follow that trend within important support and resistance levels.
In news making stocks- Netflix (Nasdaq: NFLX) will be watched after creashing more than 10% yesterday. Today, the stock is again down 2% in the pre market trading.