Growth fear to hit the market

A recession is the surfacing topic analysts discuss as yield curve turn inverted. The situation brought U.S dollar higher while putting pressure to the global equity market. Today, DJIA futures pointed down 73 points before market open. In Europe, ECB downgraded growth outlook from 1.7% to 1.1% and affirm the market that the central bank will delay rate-hike.

We might not see another rate-hike from either The Fed or ECB this year as long as growth continued to slow down.

Asian & European Stock market

Asian stock market mixed. Japan stock market down 49.66 points (-0.23%) to 21,378.73, China Shanghai Composite up 25.62 points (+0.85%) to 3,022.72, and Australia ASX 200 up 5.40 points (+0.09%) to 6,136.00. European stock market mostly lower today. DAX Germany down 0.27%, UK FTSE down 0.34%, Euro STOXX600 down 0.35%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA bounced from the daily SMA 50 and closed higher yesterday. The index looking to test 25,800 – 26,000 resistance area again. No major movement happened yet and traders will wait for either breakout or rejection from the 25,800 – 26,000 area.

Prudential Financial Inc (PRU)

PRU climbed above daily SMA 200 and attempting to bounce from it, but the share prices tumbled and print a lower low on the daily chart. It could mean the bear is in control and the highest the bull could push the price might be around the SMA 200. Traders could prepare for short positions near the averages with a stop above recent high at $98.42.

William Sonoma Inc (WSM)

WSM share prices moving inside a bullish channel and currently challenging the SMA 200. If there is rejection followed by lower low below the channel then WSM expected to start a new bearish trend. Traders could look for short position near the SMA 200. On the other hand, if upside breakout above SMA 200 happens then traders could use the averages to look for long positions.