Dark cloud on the market

U.S stock market prepares for another losing day as the market losing appetite under North Korea rising tension. The tension continues Thursday after N.Korea army commander said dialogue is impossible with Trump and only absolute force could work on him.

On the economic front, the market will watch Producer Price index which expected to increase 0.1% monthly. After the report, FOMC Member Dudley will give a speech to the market.

Earnings & Corporate report

Kohl’s corp (NYSE: KSS reported earnings per share of $1.24 vs. $1.19 consensus. The share prices up to as high as $45 from $41.93 close. Currently traded at $43.04 (+2.6%)

Macy’s (NYSE: M), Nordstrom Inc (NYSE: JWN), News Corp (NASDAQ: NWSA) and Nvidia (NASDAQ: NVDA) scheduled to report earnings today.

Technical Analysis

Dow Jones Industrial Averages (INDU)

The gap down on previous day trading resulted in bearish pin bar confirmation, but DJIA found support near the trendline and recover part of losses. The index expected to continue under pressure today as DJIA futures lower 56 points before market open.

American International Group (AIG)

AIG formed a bearish candlestick after earnings report and had been fallen from the top of the channel. The stock price currently hit the bottom of the channel where there is daily SMA 50 and 200. There is no bullish indication yet and previous day close as doji candlestick which is a neutral candlestick.

If AIG could hold the support level and form a bullish pattern, it might continue moving inside the bullish channel.

Netflix (NFLX)

Netflix from the fundamental side is a strong company with explosive growth in its subscriber. The share price has not made significant retracement since previous earnings report and it currently down near pre-earnings level. Traders could look for long position near the level as there is possibility strong bull holding the level.

Other watch lists

POT – Might reverse upside at the daily SMA 200.

YUM – bullish engulfing when the price tested daily SMA 50, might continue upward.

LOW – bullish reaction from the daily SMA 200, the price launch upside. A close above previous day high will help the bull to push the price further upward.