U.S stock market inch higher

The trade war situation continues to intensify as China and Europe announced their retaliation against the new tariff. It seems the volatility will stay at high level at least until the trade war situation cools. Traders will stay cautious for now and search for battered stocks which could survive the trade war situation. If the stock market could stabilize this month, then in a few months we could see upward movement to recover most of the losses.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index closed lower yesterday and opened the chance to continue the bearish movement. The index opened lower today but start to move upward. If the index could stabilize this week and not printing new lower low, then traders could expect it either move sideways or attempt upward movement to close the gap at 41,629.

Visa Inc (V)

V share prices turned lower and reached the daily SMA 200. It looks like the averages acting as support level now. On the lower side, there is a gap level which might be closed soon. Traders will observe the share prices reactions after the gap closed. If the share prices could maintain its position and bounce upward with strong momentum, then traders could look for long positions. $321.5 – $326.38 will become the target area to watch.