U.S stock market resume bearish movement

The stock market starts the week with strong bearish movement after previous week holiday. It seems the bearish movement could continue for a while and traders will use the bearish movement as a chance to collect shares at a discount. However, it is better to wait until the bearish pressure receded or until a blown-off selling happen. When a major bullish reaction happen after the blown-off selling, then it is a high-odds chance to enter long positions.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index has not filled the gap yet, and it turned lower again. It seems the index will attempt to move lower and either continue the bearish trend or form a double bottom pattern before actually  turning upward again. At the current time, traders will let the market play out the bearish scenario and wait for bullish formation.

Yum Brands, Inc (YUM)

YUM share prices under bearish pressure near the daily SMA 200. There is chance of bearish breakout and continuation to fill the price gap. However, if the share prices could bounce from the current level, it might not fill the gap yet. Under current situation, traders could wait near the gap location for bullish reactions. When there is bounce reactions, traders could enter long positions with stop order below the extreme swing low, as shown on the chart.