Further correction

U.S stock market is in the correction period, but the index barely moves lower. Each day, Dow Jones Industrial Averages moves between 30-70 points only, which might indicate strong interest for upside. Investors and analyst are weighing the possibility of the market movement for upcoming rate increase decision next week.

The rate-increase decision is already priced in, and the market will observe how high the rate increase is. Current bet is 75 – 100 bps increase expected.

China Trade Deficit

China surprises the market with first ever monthly trade balance deficit since 2014. Import up by 38.1% in February while export fell 1.3%. Though the trade deficit might be just a blip in data as the activities recorded on Chinese New year holiday. Analysts need to observe March data to get a better picture.

Asian stock market mostly flat today, with only Nikkei which suffer 0.47% losses. Continue into European session, all major indices in positive region and might continue its upward movement entering U.S session.

Technical Analysis

Dow Jones Industrial Averages (INDU)

The index moves lower slowly each day after it reached 21,000 psychological barriers. The price is in correction and might bounce from 20,800 level, or it could move deeper toward 20,000 – 20,200.

Best Buy Co (BBY)

BBY persistently hovered above its support $42.5 and bounced from it. The bounce from support might be a sign of bullish continuation in BBY shares. On the upside, $46.5 is the resistance to watch as the price rejected on the previous upward attempt.