22 May 2018 (9:06 AM EDT)
Although U.S. stock futures are trading positive but two of the major stock indexes; S&P 500 and Nasdaq (Composite) are very close to their major resistance levels, which indicates that U.S. stock markets may see a choppy trend today.
Dow Jones also faces resistance near 25,000 but on weekly charts, this mega index is making optimistic moves and thus, it can go in either direction- higher or sideways.
Russel 2000 is in an uptrend till now, so that ind will follow its trend line.
Other indexes will be dominated by their support and resistance levels and may trade in a choppy manner today. Yesterday’s high mark will be first resistance for major indexes and if that hurdles is crossed, then we can expect more gains in U.S. stock markets today.
However, there is a possibility that S&P 500 faces tough resistance today near 2,741 mark. If the resistance is stronger then S&P 500 could see a trend reversal from this point.
These mixed trading pattern in various stock indexes hint at a volatile trading pattern in U.S. stock markets. Day traders should watch pivot levels (given on our Pivot Trading page) and see if support is stronger or resistance, then trade accordingly.
Intraday support and resistance levels for major stock indexes are available here:
- Pivot Levels for Dow Jones
- Pivot Levels for Nasdaq 100
- Pivot Levels for Russell 2000
- Pivot Levels for S& P 500
Watch these levels, wait for markets to create a clear trend pattern, then trade with that trend, which can be quite choppy.