U.S stock market mixed

The stock market situation is mixed, with DJIA index and S&P 500 turning lower while Nasdaq moving upward. The situation mostly driven by new import tariff imposed by President Trump on semiconductor chips. But, the tariff does not effective for companies which “Building in the United States”. We could say the market still in the bearish correction phase and traders will continue to wait until the bearish pressure receded to enter long positions.

Dow Jones Industrial Average (INDU)

DJIA index moving upward and closed the bearish gap, but it looks like the bear is in control now. The index is currently testing the trend line and might attempt to bounce from it. If the index resumes the downward movement, then it will target the daily SMA 200. Traders will continue to wait for bullish reactions to add long positions in stocks.

Automatic Data Processing (ADP)

ADP share prices is currently trading near the daily SMA 200, and we could see, the low has been tapped for three times while the top of range 2 times. The consolidation still ongoing but the longer it takes, the higher the risk of bearish break down. Overall, the trend is bullish which suggest traders to accumulate long positions for now. If the share prices turn lower and close below $300.00, then it might be the time to switch to bearish scenario.