Technical analysis

Volatility is a feature of every market, influencing how prices move from one moment to the next. To interpret this movement more clearly, traders often rely on indicators that look beyond direction alone. One such tool is the average true range (ATR) – a straightforward and widely used measure that helps illustrate how active a market is.

The previous day’s high (PDH) and previous day’s low (PDL) are simple yet valuable reference points that show where notable buying or selling activity occurred. By observing these levels, traders can gain a clearer understanding of market structure and short-term sentiment as the new trading day begins.

The trading range in the stock market widened on 24 November, with the S&P 500 rising by around 1.5%.

It will be a holiday-shortened trading week, with the US market closed on Thursday, 27 November, and operating a half-day on Friday, 28 November.

It was a harsh day for risk assets, with markets opening higher only to give back all those gains, finishing sharply lower.

Inflation could be about to rear its ugly head again. Beneath the surface of the current spike in market volatility is the underlying risk that price pressures could be building once more across the global economy, especially in the United States.

Since mid-October, the S&P has fallen around 4%, while the Nasdaq has declined about 5%. There are many reasons for this, and various paths that have led us here over the past month.

It will be a busy week in the US with the return of economic data and NVIDIA’s earnings results.

The markets stare down a deluge of US data and Nvidia's quarterly results as the markets grapple with the probabilities of a US Federal Reserve rate cut in December.

Statistical analysis has been used in financial markets for many decades to help manage uncertainty – or, at least, to support the intuitive decisions of some of the top names in investment.