25 October 2019 (8:58 am EDT)
Since the last 5 sessions, US stock markets have been trading in every district range and heaven is zooming up and down between specific support and resistance levels.
This kind of sideways trend is good for day trading because you know the important support and resistance levels, from where you can buy and sell against the trend. Against the trend, because you buy when markets are falling and reach a support level, and give a signal of bouncing back. That is why you bye near support level even if the market has been falling before that.
Likewise, you sell near resistance level even if the market has been rising, but pause near resistance, and give a signal of reversing the trend.
Please remember this kind of day trading strategy works only and only in range. If you apply this kind of trading strategy in trending markets, whether up or down, then you will lose money.
So, for intraday trading, check out the range levels given on our Pivot Trading page. 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 us stock markets to open with slightly negative numbers but continue to trade with this week’s upper and lower range levels.
US stock markets are basically waiting for the Federal Reserve meeting next week. It seems that these markets will stay in a sideways trend until the Fed announces its forward-looking guidance and rate policy on October 30.