12 April 2018 (9:00 AM EDT)
Although U.S. stock futures are trading with healthy gains, but it looks like U.S. stock markets have given up their previous inclination of going higher and could remain within their weekly range.
Hourly charts show this more clearly where Dow Jones has shown resistance near 24,400 and then near 24,600. This last resistance has stopped the index from going higher in last three weeks.
On daily charts, Dow Jones has made “lower high’ pattern in last 5 sessions, which is usually a weak signal.
Today’s high futures indicate that major indexes will open near their previous session’s high levels, which has also turned into new resistance levels now. If major indexes succeed in closing above previous high levels, then it will demonstrate support coming in again.
However, if major indexes turn range bound near those levels, or even turn down, then it will reinforce resistance levels and create a new, lower trading range for major indexes and broader U.S. stock markets.
Day traders should wait after the opening bell and let markets develop a trading pattern and once a chela trend emerges, then trade with the trend. This short term trend will remain range bound so day traders should consult intraday support and resistance levels to see which way the trend leans. These levels for major U.S. indexes are given on our Pivot Trading page. Same can be checked here also:
- Pivot Levels for Dow Jones
- Pivot Levels for Nasdaq 100
- Pivot Levels for Russell 2000
- Pivot Levels for S& P 500
Expect a choppy trading session in U.S. stock markets today, where weekly range will continue to dominate markets.