Easing fear on treasury yield to boost the market

Last week, the stock market turned lower from the all-time high as inflation fear put pressure on the market. 10-year U.S Treasury yield continues to increase and reach as high as 1.6%. Despite the assurance that The Fed will keep accommodative policies, it seems the situation could radically change how the Fed responds.

This week, the yield starts to ease, down to 1.44% which helped traders to return to the equity market. However, traders and investors might want to continue to monitor closely the inflation data and yield data for now.

Asian & European Stock market

The Asian stock market significantly higher. Japan stock market up 697.49 points (+2.41%) to 29,663.50, China stock up 42.32 points (+1.21%) to 3,551.40 and Australia ASX 200 up 116.30 points (+1.74%) to 6,789.60 . The European stock market also trade higher. DAX Germany up 0.85%, UK FTSE up 1.28%, and Euro Stoxx600 up 1.36%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA made two bearish close after the all-time high. The index closed near the daily SMA 50 and will test it this week. DJIA futures currently up 280 points indicating a major bullish opening. Under the current situation, it seems the bounce might start another bullish attempt to print a new all-time high.

Traders might want to continue cautiously as the current bullish sentiment might be temporary as the U.S treasury yields ease from the high.

Autodesk Inc (ADSK)

ADSK share prices retraced lower on technology rout. The share prices closed below the daily SMA 100 but stay near the uptrend line. If the share prices could bounce from the trendline then ADSK might start moving upward to test the upper trendline. On the other hand, if a bearish breakout happens then the daily SMA 200 will become the nearest support level to watch.