20 July 2018 (8:59 AM, EDT)
U.S. stock futures have declined on same old worries of trade war with China.
Nasdaq futures have been trading highly positive in early session and are still positive by a few points, indicating a volatile and mixed trend in U.S. stock markets.
Yesterday, U.S. stock markets had a lower opening and after that major stock indexes traded in a small range. Today, these markets will either trade in the same manner, or have a bigger negative intraday trend.
Dow Jones is expected to open more than -100 points lower today. That will take it closer to its next support level of 24,900. This mega index had stared the week with a positive trend but these last two sessions of the week have changed that into a negative trend.
Since yesterday’s trading range was smaller and 15-Minutes chart was more helpful in trading within support and resistance levels, the same timeframe can be helpful in tis session too. Based on that timeframe, Dow Jones has support levels near 24,980-24,930 and 24,850.
Day traders should keep these support levels in mind and wait to see if Dow Jones gets strong enough support near any of these levels. If that happens, then the index could trade in an intraday range like yesterday, bunching from support and declining from resistance levels. However, any bigger fall in the index could indicate trend reversal on bigger timeframe.
Expect a volatile and rangebound trend in U.S. stock markets within the weekly trading range. It’s a technical trend so looking for shorter term trades could be bqficial for day traders.