20 December 2017 (9:02 AM EST)
After a low closing yesterday thanks to Apple shares, U.S. stock markets are set for a gap up opening today, as indicated by higher futures. The GOP Tax bill is again triggering a new rally in U.S. stocks and this morning, General Mills Inc (GIS: NYSE) will be in focus after reporting better than expected second quarter sales numbers. GIS shares are nearly 0.60% up in pre market trading.
Dow Jones futures had gained more than 100 points at one time, but S&P 500 and Nasdaq futures have gained only as much as they had lost yesterday. That means, these two indexes may remain range bound, making the stock market trading somewhat restricted.
The rally in Dow Jones futures is triggered by the Senate’s approval of the GOP Tax bill in re-vote. As we had written earlier, constituent companies of Dow Jones will benefit the most by these tax reforms, hence a continuous bull-run has been seen in this mega index.
Daytrading becomes a bit sluggish after such high opening, especially if other indexes do not support such a rally. You can use pivot tables of major indexes on our “Day trading by pivot” page, and check the support and resistance levels to decide your intraday trading strategies. These levels will help you notice which way markets intend to go and down big the trading range may become. You can find pivot levels of Dow Jones, Nasdaq, S&P 500 and Russell 2000 there.
After a high opening, U.S. stock markets can either continue to climb, or turn sideways and trade in a narrow range.
Give markets time to settle after initial volatility. Then trade with the short term trend.
Good luck, enjoy the session!