22 August 2017 (9:03 AM EDT)
U.S. markets had staged a bounce back in previous session and today, high futures are indicating that these markets are going to witness some gains at the open.
The earlier drop and after that a bounce back from support levels has created a new, smaller trading range for major indexes in last two session.Today’s immediate trading range is expected to be between the high and low of previous two sessions.
For Dow Jones, this means a resistance near 21,800 and support near 21,600. It will be interesting to see if the index faces any resistance at 21,750 level which could turn out to be its opening level today. If it does, then we will see a smaller trading range and if it goes above 21,750 and trades above this level, then 21,800 is expected to act as the main resistance level in this new trading range.
Range bound markets usually see lots of intra day minor up and down movements, making the trading environment quite choppy. U.S. markets can see such choppiness in this session too.
Watch how major indexes trade after a positive open, then follow the short term trend.
Good luck, enjoy the session!