24 January 2017 (9:04 AM EST)
U.S. stock futures and European markets are trading positive but with minuscule margins.
So, we can expect another narrow range bound and choppy session in U.S. markets today.
Two leading indexes from European and U.S. markets, DAX (Germany) and Dow Jones have been extremely range bound for a couple of months now. DAX had one false breakout and one false breakdown of this range but mostly staying within a narrow range of 11,640- 11,520.
Likewise, Dow Jones has also seen some false up-moves (when it tried to touch 20,000) and one false breakdown (where it fell below the range support of 19,700) but overall, its narrow range between 19,850- 19,750 continues this week. Secondary resistance and support come close to these levels at 19,800 and 19,700 respectively.
Till Dow Jones starts closing below 19,700, the range will remain intact and the index and broader U.S. markets will continue to bounce back and forth from support and resistance levels. Traders can use RSI and Bollinger Band to identify trend reversal points in range bound markets, especially if these coincide near support and resistance levels and then trade with the short term trend.
Watch how major indexes trade after the opening bell then trade within the range.
Good luck, enjoy the session!