10 January 2019 (9:00 am EST)
U.S. stock futures have been trading low through the global session as no end seems in sight for the partial government shutdown.
A lower opening will pose a risk of trend reversal in the current minor uptrend in U.S. stock markets. This minor uptrend had started with a bounce back when U.S. stock markets recovered from last year’s lowest levels.
As we saw yesterday, major indexes had trimmed their gains in the closing hour’s trade. Today, a lower opening or more losses after the opening bell will take major indexes below their previous session’s low point, which is usually a negative signal.
After a low opening, U.S. stock markets will either turn range bound and trade within the previous session’s high and low levels or continue to trade down and start a minor downtrend.
If a minor downtrend starts, it can be confirmed on hourly charts. For example, if Dow Jones falls and continues to trade below its 20-Day Moving Average on hourly charts, then it will signal a trend reversal, even if only for today’s’ session.
Day traders can follow pivot levels given on our Pivot Trading page to see if markets find support or face resistance near those levels. 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 choppy intraday trend in U.S. stock markets today. These markets are trading within a smaller range this month and previous year’s low levels are still posing resistance.
Expect that resistance to deepen if the political differences on border wall funding are not resolved soon.