U.S stock market routed

The enforcement of tariff by President Trump causing sharp drop in the U.S. stock market. Most major indices down 3-5% for the day and there is no recovery happening yet. If there is no change to the situation, then we might see further weakness, which could bring down the major indices up to 7% lower for the day. Tomorrow, there will be NFP data release which will cause volatility in the market. We could say, the market situation will depend on The Fed decision.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index seems broken lower and continue the bearish trend below the daily SMA 200. We could say the index broke out below the double top pattern and now has the level around 39,000 as target. On the lower side, it will coincide with 161.8% Fibonacci level 39,326. Under current situation, traders better stick with bearish side and use each bullish correction as a chance to add short positions.

MicroStrategy Incorporated (MSTR)

MSTR share prices relatively stable as other shares experience bearish pressure. We might see some bearish pressure toward the daily SMA 200 or the bottom of the triangle pattern. Traders could get exposure in Bitcoin by buying MSTR shares. We are expecting BTC to bottom out in 2nd quarter and start rallying to complete the bull run in fourth quarter. Traders will get confirmation when MSTR share prices moving out of the triangle consolidation.