8 December 2017 (9:21 AM EST)
Yesterday, Dow Jones had opened with slightly low numbers, in spite of highly negative futures. So, even though U.S. stock futures are quite high before the opening bell, we will focus on how US market may trade after the opening bell, based on previous closing and not on today’s stock futures.
In lat two weeks, U.S. market had witnessed a decline from the historic high level and now major U.S. indexes are bouncing back from their major support level, thus creating a mini range near the top of their current broader trading rage.
Dow Jones has immediate resistance near 24,300- 24,310 marks. Recently, the index found strong support near 24,100 which is has now become its immediate support. So today, even after a gap up opening, as indicated by stock futures, Dow Jones may face resistance near 24,300 mark and if this index crosses above that level, then it will complete the bounce back cycle, reverse the short term low trend and could continue to trade up.
However, if the index fails to cross above that immediate resistance of 24,300, then we may see a range bound or sideways trading pattern in this index and broader U.S. market.
Similarly, S&P 500 faces immediate resistance near 2,640 and 2,643 marks.If the index start trading above these marks then it may proceed to trade higher. However if the index fails to rise above those levels, and turns down from there, it will also turn sideways.
The tech index Nasdaq has been much volatile compared to other indexes and today also, this index will trade within its weekly range, which has seen a higher level of 6,900 to a lower level of 6,734.
Expect U.S. markets to trade with high volatility and remain range bound within this week’s high and low levels. High opening can sometimes make market turn sideways and trade in a narrow range. US market may also see that kind of trading pattern today, or we may see a continuous climb in these markets. Watch the short term trend and trade with it.
Good luck, enjoy the session!