21 June 2018 (8:56 AM EDT)
European stock markets have resumed their downtrend after a brief pause. U.S. stock futures have also turned negative, hitting at another lower opening in U.S. stocks.
U.S. stock markets had a mixed closing yesterday, where Dow Jones closed negative and other major stock indexes closed with positive numbers.
This mixed pattern and been going on for many sessions and today also, it seems that Dow Jones will open with deeper cuts than other indexes.
Dow Jones has been trading in an almost identical range since last two sessions and that range will be its immediate range in this session also. Other indexes will trade within their weekly range.
Volatility levels will remain high and U.S. stock could see more than one trend through the session between support and resistance levels, as we have seen this whole week.
Day traders will do well to watch the individual trend in their chosen index/ stock and focus on its trading pattern. This can be a bounce back from support levels (opportunity to trade long) or drop from resistance levels (short trades). Fibonacci levels will be more important that intraday levels as openings have been quite erratic in U.S. stock markets this week and long term levels are more useful in such trading conditions.
Watch fro this long term fibonacci levels, see if price opens somewhere near those levels. Then wait for a trend to develop and trade with that trend for shorter duration.