13 December 2017 (9:05 AM EST)
After a big rally yesterday, Dow Jones is expected to take a pause today after stunning special election results for the Alabama Senate seat.
This bitterly fought election was being seen as a public referendum on President Trump’s policies and the defeat of the Republican candidate in this staunch Republican State could make U.S. markets a bit anxious about Trump’s authority and promised financial reforms.
As futures have been subdued through the session after initial, jittery response to a Democratic win an Alabama, it is unclear how major indexes will behave after the opening bell. Although the overall trend is highly positive, for intraday trend, traders should still watch immediate support and resistance levels. (you can find those intraday pivot levels for major U.S. indexes here).
Any index/ stock trading above intraday pivot will probably trade positive and a drop below that level can indicate negative pressure.
If major indexes turn sideways before the Fed’s policy announcement later in the day ( 2 PM EST), then yesterday’s high and low levels will mark the immediate trading range for markets. There may be increased volatility if the Fed’s statement or the Fed Chair Janet Yellen’s press conference (2.30 PM) throws any unexpected surprises for markets.
Wait and watch how the short term trend takes shape after the opening bell, then trade with it.
Good luck, enjoy the session!