21 May 2018 (8:51 AM EDT)
Going by the intraday trend in U.S. stock futures, it looks like U.S. stock markets will open with bi numbers, and then trade in a narrow range.
That is how U.S. future have been trading through the global session today; a big jump at the open and then almost a straight line till now.
Dow Jones futures are more than 200 points higher today. If the index opens with equal gains, then it will open near its current rang resistance of 25,00. The 5-hour charts indicates that Dow Jones has created two strong resistance levels in recent few sessions. First of these is near 24,788 and the second is a zone between 24,900- 24,950.
If Dow Jones can cross above these multiple resistance levels, and trades above 25,000, then it will have canes of targeting higher level of 25.335.
In recent past, this index and broader U.S. stock markets have been trading in a very strict range bound manner (expect for Russell 2000 which is in an uptrend). So, day traders should carefully watch how the intraday trend develops after a high open and trade only after markets I’ve clear indication of an intraday trend. This could be a narrow range bound pattern, or more gains or, maybe a higher opening but a lower closing where major indexes could stage a trend reversal after a high opening.
Since U.S. stock markets have been trading sideways, so the trend can develop in any direction. Instead of tryin to guess which way the trend will go, just wait and let markets spell it out for you and then simply follow the intraday trend.
Last session was confined in a narrow range so today’s intraday pivot levels have become useless due to a possibly high opening. It will be better to watch hourly or 5-hour chart f0r finding out todays’ support and resistance levels and trade within those level with the short term trend.
Expect a high open but range bound trend in U.S. stock markets today.Market volatility will remain quite high, which is a normal feature of range bound trend.