4 January 2017 (8:53 AM EST)
As far as choppiness is concerned, the new year is giving tough competition to the previous year, at least in U.S. markets.
U.S. markets saw such a steep roller coaster ride yesterday that global markets hunkered down in their ranges and didn’t venture out much.
DAX is keeping its head below the major resistance of 11,620- just as we had written about in one of our earlier posts.
U.S. stock futures are trading high but just a few minutes ago, Dow Jones future wobbled and fell by a few points; showing yesterday’s jitters have not gone away.
Dow Jones is expected to open near 19,900 mark. After that, every one will be eager to see if this index makes another attempt to reach 20,000.
And, almost every one will also be waiting for the Fed’s meeting minutes at 2 PM EST today, to see what the central bank plans about its futures rate hikes.
That makes a perfect recipe of volatile session. Bulls will be hoping for Dow Jones to race up while bears will be pinning hopes on some more rate hike hints from the Fed’s meeting minutes.
For Dow Jones, major resistance at 19,886 is still intact. It will be interesting to see if the index breaks above this resistance and more importantly, if it does, then what happen with the trend in U.S. markets- more gains or quick reversal? Only time will tell.
Wait for some time after the opening bell and let the initial volatility subside. After that, trade between support and resistance levels as U.S. markets are range bound currently.
Good luck, enjoy the session.