21 December 2017 (8:28 AM IST)
20 December 2017 (9:58 PM EST)
U.S. stock markets have turned range bound and inn the last three sessions, these markets have been trading in almost within same high and low levels. The tech index Nasdaq has been mostly negative and has been putting pressure on broader stocks.
In their session overnight, U.S. stocks opened just mildly positive even after high futures and as we had written, Nasdaq collapsed immediately after the open and dragged down other indexes too.
Asia stocks have been waiting for the Bank of Japan’s monetary policy. That has arrived and the central bank has kept its lending rates unchanged. But BoJ policy has shown no effect on Asia stocks and almost all major indexes are trading negative in the region. SGX Nifty is also slightly negative, indicating a range bound pattern. U.S. and European stock futures are fluctuating between red and green numbers, indicating no enthusiasm even after their much awaited passage of the GOP Tax bill.
This stock trading pattern indicated that global stocks could remain highly volatile, mostly subdued or range bound and daytraders will need to watch carefully and trade with the support and resistance levels which are best trading tools for sideways stock trend. You can check these levels for major global indexes here.
Expect a choppy and sideways trend in global stocks markets. Individual indexes may exhibit different trading pattern. Watch how your local stocks behave, and follow that short term trend for intraday trading.
Good luck, enjoy the session!