World Stock Markets Today: Trend Turns Range bound

29 September 2020 (8:20 am IST)

28 September 2020 (10:50 pm EDT)

After two session of rebound from bottom levels, world stock markets are showing signs of turning range bound.

Dow Jones futures are positive, but with smaller margins and sitting near the previous close. Dow Jones had rallied more than 400 points in the overnight session in US stock markets, but the index created a “top hammer” candlestick which is usually considered a trend reversal signal from the top,

S&P 500 futures are trading with single digit gains at this hour, indicating that the force is weak with this index.

We are not expecting any big positive move from US stock futures as US stock markets will be waiting for a big event on Tuesday night; the first presidential debate between rivals Trump and Biden in the run up of US presidential election 2020.

For world stock markets, today’s session could become slow and volatile as all markets will be waiting for news and how US stock markets react to this debate.

At the time of writing, major Asian stock markets are trading mixed. US stock futures are marginally positive but European stock futures have turned negative. SGX Nifty is flat, indicating a similar opening in Indian stock markets.

How To Day Trade:

  1. Day traders should be ready for facing a volatile and range bound intraday trading session.
  2. US stock futures have been setting the trend in world stock markets but today, these numbers are weak and rangebound.
  3. It is also possible that these futures turn negative later in the session, which in turn will put pressure on global stocks.
  4. For day traders, the best day trading strategy will be to watch their local index, wait till a trend emerges, then trade with that trend.

World Stock markets have started with a mixed trend today. The trend is weak and could turn negative later in the session. The trading pattern will be volatile and swing between support and resistance levels.

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