Daily US Stock market Technical Analysis March 9, 2017

Deeper correction or bounce?

ECB rate is the headline topic today after previous day ADP Non-farm employment which beat expectation with 298k increase vs. 184k expected. There is possibility ECB will reiterate their asset purchase program as inflation target of 2% already reached. Major change in the economy and political landscape will put the market under huge volatility once again.

Although inflation target reached, the core inflation stays low at 0.9% which might become a reason ECB will hold the conference in dovish tone. Nevertheless, inflation might pick up in coming months and turn out better for the European region.

Asian and European stock market were threading underwater today before the major news release, the only winner is Nikkei which closed up 0.34%. Progressing into U.S session, most indices might stay at the lower level before news release.

Technical Analysis

Dow Jones Industrial Averages (INDU)

A lower close on Wednesday put the index near 20,800. It might continue lower before any bounce, but it might also correct deeper toward 20,000 psychological level. At current level traders could look for mini long position and wait for better confirmation.

Pfizer Inc (PFE)

A close above daily SMA 200 might shift the trend of PFE into bullish. Currently, the price is testing the averages, if it holds, traders could add a long position.

Autodesk (ADSK)

From the previous watchlist, ADSK reached the daily SMA 50 and showed initial bullish reaction. The price need confirmation close above its bullish candle high.

Sprint (S)

S fell lower from its daily SMA 50, and the price is moving near the daily SMA 100 where there is horizontal support line. Traders could look for a bounce between $8 – $8.15 and target $9 or more.

Other Watchlist

 

WMT – a possible long position from trendline support or daily SMA 100.

SBUX – the price back near its daily SMA 200, wait for long setup.

MOS – Share price continue lower, might reach its daily SMA 200 where traders could look for a long position.

APC – Consistently lower and reached the daily SMA 200, watch how price reacts at the daily averages.

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