Stock futures pointing lower as Treasury yields continue to climb

The U.S stock market is set to open lower today as the DJIA futures trade lower by 54 points. Traders and investors are monitoring closely the climb in U.S treasury yield which indicate a more aggressive rate hike on the card. Aside from the yield climb, there is an inversion in the long-term and short-term treasury yield which indicate a recession is looming.

Under the current situation, traders will stay cautious when taking long positions in the stock market and continue to monitor the inflation situation. Today, China’s stock market fell more than 3% after higher than expected China’s producer inflation.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index bounced from the trendline and start moving upward to retest the daily SMA 200. As long as there is no close above the daily SMA 200, the trend will continue to bearish for the short-medium term. However, if the index could climb above the daily SMA 200 and print a higher swing high then the trend will turn from bearish to bullish.

Accenture PLC Com (ACN)

ACN share prices fell below the daily SMA 200 and enter a bearish trend. The share prices continue printing a lower swing low and lower swing high which means there is no change to the bearish trend yet. At the current time, the ACN share price is testing the daily SMA 200. If a bullish breakout happens then we will see a continuation to test the daily SMA 100. On the other hand, major bearish reversal will confirm bearish continuation to print another lower swing low.