More correction on schedule
The major indices in Asian session take a turn downward with Nikkei down 0.35%, Australia ASX 200 down 0.36%. Shang Hai Composite emerge as a winner today with 0.40% gain. Progressing into European session, FTSE 100, Euro STOXX 600, and DAX Germany all stay in the negative region.
The growing protectionism displayed in G20 meeting give threat in the future of free-trade. Countries shift radically toward protectionism and will change the structure of world economy. Although protectionism looks positive for the country, in the end, tension might increase and lead to an undesirable result.
Trading session in U.S market expected to trade in a soft way as no major news scheduled today. Dow Jones Industrial Averages futures down 15 points before market open and point to the soft opening.
Dow Jones Industrial Averages (INDU)
Dow Jones Industrial Averages might be ready for further correction today. If the index slide below 20,800, traders could expect the index move toward the daily SMA 50 and possibly to 19,700 – 20,000 area.
Test of daily SMA 200 produces bearish engulfing pattern. This test is initial confirmation of bearish continuation in Walmart. However, as long as the price close above the two-day candlestick pattern, there is the prospect for the bull to cancel bearish pressure.
MCD – possible continuation upside after attempt higher cleared supply level.
PG – bearish pattern at the top, might trigger more sell-off
AMGN – gapped down near its daily SMA 50