14 August 2018 (8:59 AM EDT)
Global stocks had a breather today as Turkish currency lira bounced back after a recent crash. But now, lira has become rangebound against dollar and is showing weakness at current levels.
Perhaps that is why U.S. stock futures and European stocks have started to give up their earlier gains.
European stock markets are trading mixed with either negative numbers or single digit positive numbers.
U.S. stock futures have also rapidly lost some of their earlier gains. This indicates that the intraday trend could remain choppy in U.S. stock markets just like yesterday when a positive opening had ended in a negative closing.
Major U.S. indexes are expected to trade within last two session’s high and low levels. There are thin chances of breaking out of previous high level but the low level will be at risk if currency markets witness nay weakness in Turkish lira again.
Day traders should use Fibonacci levels for intraday trading since previous Fibonacci levels are back in the play. For example, Dow Jones is back to testing its previous important level of 25,200 and 25,500.
Let markets establish an intraday high and low and then whichever levels is broken, trade in that direction with the trend. The intraday trading pattern can remain highly volatile in U.S. stock markets today.