US Markets Today: Previous Range Dominates, Choppy Session

28 August 2017 (9:12 AM EDT)

U.S. stock futures have turned higher after a couple of negative economic reports. The Dollar index is negative and therefore, euro is flying high, in turn keeping European markets down.

Higher futures are indicating that U.S. markets will trade within last week’s range. Dow Jones is still stick between 21,800 (strong support) and 21,900 ( current resistance).¬† The index reached this resistance level twice last week and failed to break above it. Till Dow Jones crosses above this stubborn resistance, we can expect a choppy and range bound trading pattern in this mega index and broader U.S. markets.

In such a narrow range, a high opening usually ends with a trend reversal from dominating  resistance levels. So, traders should watch for such a trend reversal after a gap up opening. If, Dow Jones succeeds in crossing above 21,900 and STAYS above that level, then it will indicate a breakout and we can expect this index to move upwards towards 22,000.

Wait and watch how markets trade in the initial minutes after the opening bell, then follow the short term trend. Markets volatility may remain quite high.

Good luck, enjoy the session!

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