Second landmark in DJIA

Headlines around the global market from the previous day and today is how Dow Jones Industrial Averages seize the second landmark in a very short time. Analyst argues it was not the President Trump speech which moves the index and mentioned it was short sellers who made the index sharply higher. Panicked short-seller exit position, need to buy the shares and naturally, it put the index up.

Meanwhile, Eurozone posted 2% inflation in consumer price while core inflation stays at 0.9%. The divergence of number translated into concern as ECB need to readjust its monetary policy to even out both inflation number.

Technical Analysis

Dow Jones Industrial Averages (INDU)

The closure of index above 21,000 and continuation of euphoria, both might indicate the trend will reverse soon. Dow Jones Industrial Averages also has 38.2% Fibonacci extension at 21,316 which might limit further bullish move. DJIA futures little change which tell the rally might continue today.

Anadarko Petroleum (APC)

APC drifting lower inside its uptrend channel and the price reached the bottom of the channel. Unfortunately, it closed outside of the channel range and might continue lower if it cannot close inside the range. If the price continues lower, it has daily SMA 200 as the target.

Microsoft Corp (MSFT)

The share of Microsoft move in a similar manner to APC, it currently sits at the bottom of the channel. The price might bounce higher from the current level, but it already closed below the channel which is negative. If the price cannot move back inside the channel range, we will see further decline toward SMA 100.

Other Watchlist

EBAY – The price is moving up and near the top of the blue channel shown in our Long-term analysis. There is a chance the price will reverse when it reach the top of the channel.

CRM – The share price hit an all-time high, may continue further upside.

CNI – Possible bounce from its daily SMA 50