Oct 24, 2014, 9:27 AM EDT
Okay bears, hers is some bad news for you. U.S and European markets are holding on to the upper levels of their previous bounce back, which indicates that markets are in a mood to continue rising.
Especially DAX, along with major U.S. indexes had been making “higher low” patterns which is really alarming- for bears. Does that include me, the self-proclaimed bear? Nope. I am a staunch believe of the doctrine “do as markets do”, so no matter how much I want U.S. markets to fall below their previous low levels, if markets turn positive, I’ll do the same
U.S. stock futures have recovered a lot from their earlier low levels. That means major indexes in these markets will continue to trade in their yesterday’s range. Only if the high or low level from last session is broken in the intra day session today, then we can expect a trend in the same direction.
So, give markets some time to settle after the opening bell, let it create today’s initial high and low levels, and then wait for a breach in any of those levels. Range bound markets tend to be highly volatile, so don’t expect one way trend today, unless some news or rumor causes a bearish stampede or bullish frenzy.
Good luck, trade carefully and enjoy the session!
See you later.