16 April 2018 (8:47 AM EDT)
U.S. stock futures are rallying today, indicating a gap up opening in U.S. stock markets soon.
High futures are indicating an opening above previous session’s opening levels, from where markets had dropped and closed in the red last Friday.
Dow Jones futures are now nearly 200 points higher and that given hope of a breach in its previous strong resistance near 24,500. Dow Jones had fallen below this level almost a month ago and since then, the index had been unable to break out of this strong resistance.
Today’s gap up opening will take it above that levels and if the index survives above 24,500, then we can expect a new wave of uptrend with a new target or 24,900.
Although U.S. stock markets are still broadly range bound but a new support had emerged earlier this month when bears failed to drag markets below February low. Since then major indexes have been inching up and making “higher lows” that signals a short term uptrend.
Day traders should keep an eye on intraday support and resistance levels to see how the trend develops for the day. These levels for major U.S. indexes are given on our Pivot Trading page. Same can be found on these links too:
- Pivot Levels for Dow Jones
- Pivot Levels for Nasdaq 100
- Pivot Levels for Russell 2000
- Pivot Levels for S& P 500
U.S. stock markets may continue to trade with volatility and roam between previous support and resistance levels. The closing levels of Dow Jones will indicate if today’s higher opening will push U.S. stock markets above their previous resistance or if markets will continue to trade within last week’s trading range.