12 September 2019 (9:11 am EDT)
The European Central Bank’s much-awaited rate cut and stimulus program have arrived but US stock futures and European stock markets have reacted in a very subdued manner.
Markets are now waiting for the ECB press conference but it looks unlikely that any bigger news will be declared there. Going by markets’ reaction, it looks like the ECB stimulus was as big as markets were expecting. So now what? Will markets give up the gains they have accumulated in hopes from the ECB? If that happens, then we could see a negative trend in US stock markets today.
If not, then another positive, but volatile session could be in store for US stocks. In any case, day traders should watch support and resistance levels (given on our Pivot Trading page) which will help them decipher the intraday trend. 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 US stock markets to open with positive numbers. But before the opening bell, US stock futures have not welcomed the ECB stimulus and rate cut announcements by any big jumps. That means, day traders should stay cautious, watch the trend develop in markets after the opening bell, then strictly follow that trend.