11 September 2019 (8:41 am EDT)
US Producer Price numbers have come better than expected, showing the growth in the economy. This could disappoint US stock markets as the Federal Reserve will find it difficult to cut lending rates if the economy keeps leaping up.
US stock futures have already been trading with moderate gains, and now the PPI numbers have ensured that the current volatile and rangebound trend will continue in US stock markets. Although the overall bias is positive in these markets, now major stock indexes have reached close to their monthly range tops which is increasing the volatility and keeping the gains in check.
To trade rangebound markets, knowing both support and resistance levels is useful. We have provided such levels for major stock indexes 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
US stock markets are expected to maintain their upward momentum but with a slower pace and with high volatility as we have seen in the previous few sessions. Day traders should watch both the support and resistance levels and trade with the dominating trend within those levels.