DJIA to bounce at the end of week

DJIA futures up more than 250 points before the market open, indicating U.S market rally today after high volatility week. Bond yield recovered slightly, easing recession fears. However, the market could return under pressure when the bond yield starts moving down again.

At the current time, we could regard the upward movement as a relief rally and expect more bearish pressure in the future.

Asian & European Stock market

Asian stock market traded cautiously today. Japan’s stock market up 13.16 (+0.06%) to 20,418.81, China stock market up 8.03 (+0.29%) to 2,823.82, and Australia ASX 200 down 2.60 points (-0.04%) to 6,405.50. European stock market modestly higher. DAX Germany up 0.85%, UK FTSE up 0.52%, Euro STOXX600 up 1.07%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA escaped the breakdown below daily SMA 200 and closed the day bullish just several points below the averages. The index might continue moving upward today as the index futures pointed upward more than 250 points. As long as the index maintains the level above SMA 200 then it still has a chance to stay bullish for long-term.

Expedia Inc (EXPE)

It is a bounce or breakdown situation for EXPE share prices. We have trendline support and daily SMA 100 protecting the share prices from moving further lower. If the share prices move lower then daily SMA 200 will become the level to watch for a possible bounce.

Union Pacific Corp (UNP)

UNP traded near its daily SMA 200 and might find support. We could see a flip level on the chart where the resistance turned support. Long positions near the level might be a high odds strategy traders could take. However, if the price broken downside then we might see the flip level act as resistance once again.