Flat open as earnings season continue

The stock market set to open slightly higher as DJIA futures up 17 points before the market open. Today sentiment might be influenced heavily by President Trump comment. The president sees both U.S and China have a long way to go on trade talk. He suggested the U.S could impose sanctions on additional $325b Chinese goods.

Asian & European Stock market

Asian stock traded down on renewed trade war concern. Japan’s Nikkei down 66.07 points (-0.31%) to 21,469.18, China stock market down 5.92 (-0.20%) to 2,931.69, and Australia ASX 200 up 32.30 points (+0.49%) to 6,673.30. European stock moving in high caution. DAX Germany down 0.17%, UK FTSE down 0.11%, Euro STOXX600 up 0.03%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA mostly flat since the beginning of the week. The index might continue moving sideway as earning seasons continue. There is comment by President Trump which threatens current trade talk between U.S and China. If the trade tension intensified then we might see DJIA start moving lower to test 27,000.

United Parcel Service (UPS)

UPS approached daily SMA 200 and tested it yesterday. The share prices formed a bearish pin bar pattern and might start a bearish correction. If a bearish correction happens then traders could observe UPS reaction near the trendline for a possible bounce.

Western Digital Corp (WDC)

WDC trend slowly turned bullish since the share prices climbed above daily SMA 200. We could see a possible channel and rejection from the top of it. WDC might start moving lower and test daily SMA 200 before further upside. Long positions near the averages when there is a bullish pattern might be the best options traders could take.