14 December 2017 (8:52 AM EST)
U.S. markets saw a positive but choppy session yesterday where major indexes first rallied with healthy gains then called down before the closing bell.
That kind of volatility may continue in these markets today also and the trend may remain mixed.
Companies in Dow Jones index are going to benefit in a major way by Trump administration’s corporate tax cuts. That is why this mega index has been in a relentless rally for almost an year now.
However, tech companies will not benefit much from those tax reforms. That is why Nasdaq keeps witnessing steep proof booking from time to time. Yesterday too, this tech index saw that selling pressure at day’s high levels and declined to close near day’s low point.
S&P 500 closed in the red, differing from positive closing in Dow Jones.
This mixed and choppy intra day trend is expected to continue today as well. The immediate trading range inn major indexes will be between previous high and low levels and beyond those levels, intraday pivot levels will keep guiding the trend. (Here are today’s intra day pivot levels for Dow Jones, S&P500, Nasdaq 100 and Russell 2000).
Day traders should watch the intra day trend after the opening bell; which could be sideways within previous high and low levels , or markets may continue to trade higher.
Once the trend becomes clear, then trade with it within support and resistance levels (sideways) or trade with Moving Averages (uptrend).
Good luck, enjoy the session!