21 February 2018 (8:48 AM EST)
U.S. stock futures have been trading with considerable choppiness through the global session and that choppy trend is expected to continue after the opening bell in U.S. stock markets.
On technical charts, Dow Jones had yesterday turned down from its 50-Day Moving Average (25,200). that effectively makes this levels its current range resistance level, stretching down to its range support level of 100-Day Moving Average (24,200).
That means, in coming days, Dow Jones is expected to trade within this range, unless the index breaks above its current resistance of 25,200.
The tech index Nasdaq is in a much better position and sits above its major moving averages, giving it a positive slant. But again, its the trend in Dow Jones that dominates U.S. stock markets so any downward trend in Dow Jones will affect other major indexes too, notwithstanding what their own technical indicators hint at.
Since U.S. stocks have become range bound, it will be better to trade with support and resistance levels, otherwise called pivot levels. You can get these pivot levels of major U.S. indexes on our pivot trading page and use those numbers for intraday trading strategies. Support and resistance levels give good indication of price reversal points which can be used for trade entry of profit booking.
Expect U.S. stock markets to trade with high volatility and in a broader range. Yesterday’s high and low points will act as the immediate trading range. any index or stock trading above previous high will signal a positive strength and any index or stock that falls below previous low points will, obviously, face risks of a negative trend.
How world stock markets had opened their session earlier today: