18 June 2018 (8:29 AM IST)
17 June 2018 (10:59 PM EDT)
Let’s first take a look at how U.S. stock markets trade in their last session, then it will becomes clear how world stock markets are trading today.
U.S. stock markets fell in their early hours on Friday last, but just as we had written in our post that day, major U.S. indexes bounced back from their major support levels and erased most of the losses before the closing bell. Dow Jones found strong support near 24,900 and closed above another support of 25,000. Nasdaq kept climbing up after a low opening and created a green candlestick on charts which opened low but closed much higher that those opening levels.
Today, U.S. stock futures are trading highly negative but given the trading pattern in their previous session, these futures are still within the trading range of Friday’s range.
The same trading pattern is being repeated in SGX Nifty, the future index of Indian index Nifty. SGX Nifty opened much lower, but then recovered from those levels and is now rage bound near day’s high level, although still in the red.
All major Asian stocks are trading negative. European stock futures are also trading negative.
So, at the time of writing it is “lower opening, range bound trading” pattern in world stock markets. Later in the day, it can either improve from here- if U.S. stock future improve their numbers, or fell down some more if those futures decline further.
For day traders, it will be wise to watch only their local index and follow its short term trend. Markets can be highly volatile just like previous many sessions. Major support and resistance levels will still dominate the intraday trading pattern.
Day traders should watch those patterns near intraday support (bounce back) and resistance levels (trend reversal) and trade accordingly.