DJIA more bullish case on the card

A bullish movement after previous week major bearish sentiment after bond yield inversion might be out of the question. DJIA made sharp recovery at the end of the week and currently, DJIA futures pointed upward more than 200 points.

The stock market unexpectedly bullish as traders and investors waiting for a round of stimulus across the world. Current bullish sentiment might last for short-medium-term. Today, no major economic news to watch. The market attention will be focused on UK Boris Johnson who will meet with German and French leader this week. Rumor says the UK government has been prepared for “No-deal” Brexit.

Asian & European Stock market

Asian stock market is mostly higher today. Japan’s stock market up 144.35 (+0.71%) to 20,563.16, China stock market up 59.27 (+2.10%) to 2,883.10, and Australia ASX 200 up 61.90 points (+0.97%) to 6,467.40. European stock market also traded higher on stimulus hope. DAX Germany up 0.94%, UK FTSE up 0.96%, Euro STOXX600 up 0.77%

Technical Analysis

Dow Jones Industrial Average (INDU)

No breakout below SMA 200, but DJIA could not return above the top of channel and 26,000. This week, the index will consolidate between SMA 200 and the top of the channel. Will the index return to the bullish trend and target 27,000? Alternatively, will it breakout below SMA 200 and move inside the bearish channel?

Adobe Inc (ADBE)

ADBE consolidate near the SMA 100 and supported by the bullish trendline. The share prices might start moving up and resume its bullish trend. However, if a breakout happens then we might see ADBE traded lower and target daily SMA 200. Traders could look for long positions near the trendline.