DJIA futures trade lower in the Asian session

The DJIA futures trade higher after the U.S senate pass the $1.9 T stimulus package. However, the bullish pressure has receded in the Asian session and the index futures trade lower more than 100 points. The market seems uncertain on where the stock market will move next as a gradual increase in treasury yield this year triggers tapering fear.

It might be a matter of time before the Fed decides to increase the interest rate or start tapering. Traders will monitor closely the yield market and the Fed action for now.

Asian & European Stock market

The Asian stock market mostly lower today. Japan stock market down 121.07 points (-0.42%) to 28,743.25, China stock down 80.57 points (-2.30%) to 3,421.41 and Australia ASX 200 up 28.80 points (+0.43%) to 6,739.60 . The European stock market on the other hand trade higher. DAX Germany up 0.77%, UK FTSE up 0.47%, and Euro Stoxx600 up 0.67%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index bounced from the daily SMA 50 last week. The index seems will attempt to continue its bullish movement especially after the senate approved the $1.9 T stimulus bill. However, the DJIA futures currently lower more than 100 points. It seems the market attention will return to the treasury yield which continues to increase.

If DJIA makes a bearish correction then traders will observe 29,000 and 30,000 handles.

Paypal Inc (PYPL)

PYPL is on a bearish correction phase and has reached daily SMA 100 last week. The share prices bearish momentum is strong and might attempt to move lower to test the trendline and daily SMA 200. Traders will continue to monitor the share prices near both levels and enter long positions on bullish reactions.