12 February 2019 (8:41am EST)
U.S. stock futures are trading with big gains at the time of writing, indicating a higher opening today in U.S. stock markets.
Despite a gap up opening, these markets will remain range bound within last week’s trading range. This range will be broken only when major indexes break out of previous week’s high level.
On Dow Jones chart, this range is clearly reflecting in 5-hours chart. This mega index has multiple times survived falling below its major support of 25,000 in last few sessions. That danger will pass only if it starts trading with strength over last week’s trading range. Otherwise, it will remain rangebound and will continue to face the risk of breaking down its support levels.
For day trading, use intraday pivot levels provided on our Pivot Trading page. For major indexes, these levels are:
- Pivot Levels for Dow Jones
- Pivot Levels for Nasdaq 100
- Pivot Levels for Russell 2000
- Pivot Levels for S& P 500
Expect a high opening but range bound intraday trend in U.S. stock markets in today’s session. After a gap up opening, U.S. stock markets will either continue to climb (stronger support) or trade lower from higher levels (stronger resistance).
Day traders should wait till markets create an intraday range, and the trade in the direction of the short term trend.