27 Jan, 2017 (8:23 AM IST)
26 January 2017 (9:53 PM EST)
Global markets are back to their previous trading pattern of being range bound and volatile, leaving behind the strong uptrend of just a day before.
That means, day traders are back to watching Fibonacci levels and oscillating indicators like RSI because now, prices will again move within a fixed box of support and resistance levels unlike in a trend, where prices move up or down like ascending or descending an open staircase and where Moving Averages are best indicators to follow.
U.S. markets traded in a narrow range overnight and closed mixed. Dow Jones survived above 20,000 and closed with positive numbers but S&P 500 and Nasdaq closed just below the red line.
European markets had also ended their previous session with mostly negative closings.
U.S. and European stock futures are trading slightly negative, indicating that these markets have become range bound within this week’s levels. Global markets are also following a similar trend and markets in Asia are trading mixed. Major Asian markets are trading positive but with smaller numbers compared to previous sessions. SGX Nifty is down by 23 points following the change in global trading pattern.
Expect global markets to stay within this week’s range and trade with high volatility and uncertainty. From next week, a new month will start and various central banks will start their monetary policy meeting so markets may turn cautious now.
The global trend will be dominated by U.S. stock futures in the first half and European markets in the middle half of today’s session.
Good luck, enjoy the session!