US Stock Markets Next Week: Day Trading Trend Analysis

31 December 2017

Us stock markets traded lower on Friday and closed with considerable negative numbers. Although U.S. stock futures were trading quite high before the opening bell, indicating a higher stock markets trading that day, but president Trump’s comments berating Amazon put pressure on tech stocks. As a result, tech index Nasdaq fell, putting pressure on broader stock markets as well.  Dow Jones closed with more than 100 points’ loss.

That is how U.S. stock markets traded intraday on Friday.



Let us take a look at the weekly trading charts of major U.S. indexes and see, what charts of  Dow Jones, S&P 500, Nasdaq and Russell 2000 are indicating about next week’s trend possibilities. Checking these patterns will help you in preparing next week’s day trading strategies.

In these weekly charts,  you can see that some of the major U.S. indexes are trading range bound while others are pointing to a lower trend within a broader range.

Take a look at the chart of Dow Jones Industrial Average. The index has been trading sideways in last two weeks, narrowly within a similar trading range. Dow Jones closed for the weekend  near 24,700 on Friday, which also happens to be its support level for current weekly trading range. If the index falls below this range support, then the chart shows another Range support  near 24,200.

US stock markets trend analysis

Weekly trading charts of Dow Jones, S&P 500, Nasdaq and Russell 2000 (chart courtesy: Investing.com)

How will Dow Jones trade next week?

  1. Either, Dow Jones will trade sideways within last two weeks’ trading range (higher and lower levels). That would mean a bounce back from last week’s lower levels.
  2. Or, it will breach the current range support of 24,700 and trade lower to the next range support near 24,200.

How will Nasdaq trade next week?

On weekly trading charts, Nasdaq Composite is showing a clear breakout, that happened two weeks ago; and then a trend reversal from those higher levels. It was mostly due to low trading in Apple, that came under pressure due to negative report about iPhone X and older iPhone batteries.

Looking at weekly chart of Nasdaq Composite, it becomes clear that after the break out the index has been trading continuously in negative trend and closed last Friday near its major support of 6,900. Compared to Dow Jones, Nasdaq is showing clear lower trend and looks headed for its lower support range of 6,800.

Before that level, the index will have another support near 6088. If Nasdaq can hold that support, then it can bounce back from there and reverse back to higher levels. However, if Nasdaq Composite falls below this support, then it can  tumble down to the next, lower support of 6,800.

How will S&P 500 trade next week?

Weekly trading chart of S&P 500 shows a drop within a broader trading range. The index closed on Friday below its previous support of 2,675, within that range. Just like Dow Jones,S&P 500 can also have two possible intraday/ weekly trend. The index will either bounce back from the closing levels of previous week, or it will continue to fall down till its next range support of 2,650.

How will Russell 2000 trade next week?

this is small cap index has mid range bound but negative signal. as you can see on its weekly chart, Russell mm is trading in Abroad arrange and last week it close near the middle point of this range. next week, Russell 2000 will either get a chance to bounce back from the last week’s closing level, and trade up words, or the index will fall below last week’s closing level, and trade downwards towards the next range support of 1,500.

Trading in US Stock Markets Next Week

Overall, Dow Jones and S&P 500 are showing an uptrend, within a broad range, where these indexes keep taking breathers and then bounce back to go up again. But Nasdaq and smallcap index Russell 2000 are showing a fake breakout, where these indexes jumped up suddenly, breaking out from their previous range, but failed to hold onto those gains, and came back to close within their previous range last Friday

For Dow Jones and S&P 500, the trend will remain range bound next week, Nasdaq and Russell  2000 are facing risk of more lower trading, but still remain within their previous range.

on Monday, U.S. stock markets will be closed along with other major global stock markets for New Year’s holiday.

If you want to learn how to day trade stocks and markets, then observe these and other charts and prepare your day trading system for Tuesday.

This is how you can prepare a day trading system:



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