DJIA futures boosted by Walmart return to the positive region

The stock market suffered heavy sell-off yesterday after bond-yield inversion. The bond yield inversion is an early indication that an economic recession is looming. Today, the U.S stock market might open positive after futures reverse losses of 50 points and turn positive 50 points after Walmart jump before market open.

Walmart reported earnings per share of $1.27 vs. $1.22 analysts expectations. Revenue comes out at $130.4 billion vs. $130.1 billion expectations. Share prices up more than 6% in the pre-market trading.

Asian & European Stock market

Asian stock market mixed today. Japan’s stock market down 249.48 (-1.21%) to 20,405.65, China stock market up 6.88 (+0.25%) to 2,815.80, and Australia ASX 200 down 187.80 points (-2.85%) to 6,408.10. European stock market traded lower joining global sell-off. DAX Germany down 0.76%, UK FTSE down 0.89%, Euro STOXX600 down 0.29%

Technical Analysis

Dow Jones Industrial Average (INDU)

It is a bounce or bearish continuation situation for DJIA. If the index extends its bearish close below the daily SMA 200 then we will have major pullback toward the bottom of the channel or at least toward 25,000. On the other hand, it the bull could defend daily SMA 200 and bounce from the averages then we might see DJIA start recovery toward 26,000.

Kinder Morgan Inc (KMI)

KMI share prices are in pullback and currently traded between two trendlines. We think the share prices could extend its bearish move toward the daily SMA 200 where it might find support. Traders could prepare for long positions near the averages or the bottom trendlines when there are bullish reactions.