Dow futures tank 600 points as U.S prepare for very very “Painful” two weeks

President Trump said on Tuesday evening that U.S should prepare for a very very painful two weeks from the coronavirus spread. White House project death tolls between 100,000 – 240,000 caused by coronavirus. It is 25 – 60x current death tolls.

DJIA futures down more than 600 points and suggests a weak opening level today. The negative sentiment expected to cloud the market for now.

Asian & European Stock market

The Asian stock market on the defensive side today. Japan’s stock market down 851.60 points (-4.50%) to 18,065.41, China stock market down 15.77 points (-0.57%) to 2,734.52 and Australia ASX 200 up 181.80 points (+3.58%) to 5,258.60. The European stock market mostly lower. DAX Germany down 3.01%, UK FTSE down 3.78%, Euro STOXX600 down 2.94%

Technical Analysis

Dow Jones Industrial Average (INDU)

No close above 22,558.33 and the DJIA futures currently down more than 600 points. It seems DJIA will start moving lower and test the 21,201.19 level. We think the index might continue consolidation inside the range for now. However, if the bearish pressure becoming too strong then expect a long-term bearish continuation in the index.

Home Depot Inc (HD)

Normally a fake bearish breakout shown on the monthly chart is a no-brainer clue for long positions. However, the global market situation is the main determinant of the share prices next direction. We might have a breakout below the bottom of the channel this month and another attempt to close below it.

If the bull could make another bullish safe inside the bullish channel then HD can continue its bullish trend. (Less likely to happen)