Daily US Stock market Technical Analysis January 5, 2017

Flat day after FOMC

U.S stock market futures are swinging up and down in uncertainty before job data today. The market relatively downbeat as U.S dollar pulled back against other major currencies. Fed minutes reveal the upside risk watched by The Fed; they are anticipating a big shift in policy under President Trump which might lead The Fed to increase interest rate faster rather than gradually.

The increase in interest-rate will undoubtedly push U.S dollar up in the future, and also possible to push equity market up also as other major markets are still weak and not lucrative for investment.

Technical Analysis

Dow Jones Industrial Averages (INDU)

The 20,000 mark is not far but seems hard for the bull to reach. On the other hand, the bear looks for this area to trigger new short position. This Friday we have trigger news, the non-farm employment data, all odds still favor for more appreciation which might lead the index to reach 20,000 when data released.

Note: Lower volume indicate indecision or wait and see attitude.

Air Products and Chemical (APD)

APD closed its earnings gap last month, and the price retraced toward the daily SMA 200. It commonly happens and if the price can bounce from the current level. It will continue the bullish trend initiated since the flip above daily SMA 200.

Dunkin Brands (DNKN)

The price of DNKN fell after it almost reaches record high ($56.79). The retracement found support at daily SMA 50 and formed a bullish pattern. If the price can move higher than $52.82, then it will confirm the bullish movement.

Other Watchlist

JWN – the price reached its daily SMA 200, possible bounce.

BBBY – break from consolidation range $40.3 – $41.50, possible continuation.

BBY – Bullish attempt near the daily SMA 50

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