US Stock Markets Today: Low Opening, Volatile & Rangebound Trend

28 September 2018 (GMT-4)

U.S. stock futures have dropped following a highly negative intraday trend in European stock markets on euro zone political worries, especially in Italy.

Dow Jones futures were down by more than -100 points a few minutes ago, indicating a much lower opening in this mega index.

In stocks, Tesla has crashed by more than -12% in pre-open trading after the Securities and Exchange Commission (SEC) charged Tesla’s CEO Elon Musk with fraud. There are many more negative reports about Tesla and Musk and one can expect the stock to trade lower through the session.

In major stock indexes, Dow Jones is expected to open near its first support for the day. Day traders can check these intraday pivot levels on our Pivot Trading page. After yesterday’s rise and today’s low opening, U.S. stock markets will trade in a rangebound manner and technical trading will be a good trading strategy. Support and resistance levels can help traders decipher if markets are going up (strong support) or down (strong resistance). Individual pivot levels for major indexes are:

Day traders should wait for markets to become stable after a gap down opening. Usually, RSI drops steeply with a gap down opening which generates  a buy signal for scalpers who jump in and push price higher. This is why day traders should wait for some time after market’s opening on such days. In fact, waiting for a clear trend in always good, in all sessions for day traders.

Expect a volatile a broadly rangebound trend in U.S. stock markets today. The week had started with negative numbers and could end similarly for these markets.

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