Bearish start on DJIA

Holiday thinned trading day put the market down since Asian session. The lackluster performance was seen in Japanese stock market and European stock market. Dow Jones Industrial Averages futures also slipped 44 points before market open and indicated possible correction in Wallstreet today. The absence of major news today might not change the course of the market since this morning which is bearish.

The only major news comes from President Trump signature on refugees ban. This ban prohibited refugees from seven countries to enter the United States.

Technical Analysis

Dow Jones Industrial Averages (INDU)

First bearish candlestick after the index closed above 20,000. There is not much to expect in uncharted territory, and the index could either move up or start a retracement toward 20,000 and look for a bounce. Traders will need to wait until further clarity on the trend.

Kimberley Clark(KMB)

A Recent bullish attempt in KMB put the shares up near its upper channel and also the daily SMA 200. The price face resistance of Fibonacci 38.2% retracement, and might reverse its course. If it can close above $125, it will open more room upside.

Other Watchlist

IBM – bearish candlestick pattern formed at the top, possible retracement on the card.

POT – rejection from $20 resistance, the shares looking for support at $18.50.

LVS – the price back near its daily SMA 200.

X – flag pattern with support at SMA 50. Look for a break above $34 – $35.

SBUX – The shares took a beating after CEO Howard Schultz announce their plan to hire 10,000 refugees in protest against President Trump ban policies. The announcement incites boycotts on SBUX. Possible long opportunity if the boycotts lifted.