Pause before tax reform
It has been two rosy days for U.S stock market as the major indices keep moving higher aggressively. Investors, traders are waiting for President Trump tax reform plan. The tax plan should give the market another wind and bring the stock market higher.
Aside from the tax-reform news, Japan will announce rate decision followed by ECB. The market in Asian session mostly positive, but entering European session, it looks like the market takes cautious approach before major news announcement.
Technical Analysis
Dow Jones Industrial Averages (INDU)
DJIA scores a bullish close above the 20,800 resistance and ready to challenge its record high. Depend on today news on tax-reform, DJIA might continue higher if the tax-reform passed. There is Fibonacci extension level at 21,316 which might become the target of upward movement.
Toll Brothers (TOL)
Bullish outlook on TOL continue on the daily chart. Currently, the price has tested the daily SMA 50 and formed bullish candlestick pattern. It is expected to continue its uptrend which will be confirmed with a break above the previous day candlestick high.
Other Watchlist
EBAY – bullish pattern from its daily SMA 100, might continue upward.
AMT – inside bar pattern at the top, might switch down.
DAL – approaching $47 resistance.