19 September 2017 (8:16 AM IST)
18 September 2017 (10:46 PM EDT)
U.S. markets continued with their “jump rally” in the overnights session. These “jump rallies” are characterized by continuous gap up openings and positive sessions, taking markets higher without any dip in the trend. On daily charts, this type or rally looks like an almost straight, steep line going upwards. Usually, this kind of steep uptrend takes place when markets are expecting big, free money from some source such as big central bank QE or now, from Trump stimulus.
U.S. markets have also been completely ignoring all that North Korea brouhaha which shows that North Korea is nothing but a hoax, created by global powers to use it for their advantage. that is why, when global markets were worrying about NK missile launches, U.S. indexes were rallying ahead. S&P500 is comfortably above 2500 now and Dow Jones is headed towards 23,000.
Today, at the time of writing, U.S. and European stock futures are pausing and trading just below the red line, hinting at a range bound session. Asia markets are mixed, showing the same pattern and SGX Nifty is some -15 points lower, indicating a range bound pattern in India markets too.
This range bound pattern is for short term, the trend has become positive for global markets. After the recent breakouts, buying is expected to come at dips or support levels thus supporting the uptrend.
Previous major resistance levels will now act as support levels. U.S. markets are leading the global trend and other stock markets will continue to follow the trend in those big markets.
Expect global markets to remain either range bound (trade within previous session’s range) or continue with a positive trend. Markets may remain choppy as usually happens in range bound and mixed session.
Watch how your local index trades and follow the short term trend for intra day trading.
Good luck, enjoy the session!