12 June 2019 (9:00 am IST)
11 June 2019 (11:30 pm EDT)
World stock markets have slow down their recent uptrend and have become sideways now as big traders and investors wait for the Federal Reserve’s policy meeting.
This is a classic stock market trading pattern, where stocks had a strong trend, then paused for taking a breather, after which they will try and trend again; maybe in the same direction, maybe not.
Us stock markets are leading Global world stock markets in this trading pattern. After enjoying in uptrend last week and in the opening session of this week, U.S. stock markets have now become sideways and are waiting for the Federal Reserve policy meeting to be held next week.
We had warned our readers that U.S. stock market has made a “top hammer” candlestick which usually indicates a trend reversal, and true to that technical signal, U.S. stock markets have now become highly volatile and range bound near their major resistance levels.
This same volatile trading pattern is being seen in Asia today where major stock indexes are trading with mixed negative and positive numbers. SGX Nifty is trading with slightly lower numbers indicating a range bound study pattern for Indian stock markets.
At the time of writing, U.S. and European stock futures are trading negative signaling that the previous uptrend has paused and these markets will now trade within their weekly trading range.
Day traders should follow the local Trend and was the important support and resistance levels of their local index. The best trading strategy will be to trade only within these levels with the dominating short duration trend.