Clueless market as futures flat

U.S stock market set to open near 0 points as the futures traded flat. No major news to watch, traders are waiting for the development of trade wars issue between U.S and China. Meanwhile, China’s PBOC makes a loan reform to lower borrowing cost for the smaller business.

PBOC announced, they will push commercial lender to use Loan prime rate instead of benchmark interest-rate for new loans. More financial institutions can participate in LPR submission, increase from 10 to 18 institution.

Asian & European Stock market

Asian stock market mixed today. Japan’s stock market up 114.06 (+0.55%) to 20,677.22, China stock market down 3.09 (-0.11%) to 2,880.00, and Australia ASX 200 up 77.60 points (+1.20%) to 6,545.00. European stock market also traded mixed. DAX Germany down 0.06%, UK FTSE up 0.24%, Euro STOXX600 up 0.03%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA closed above 26,000 and open the upward scenario. Despite the bullish outlook, we think the upward movement is temporary. It could lose momentum anytime and start moving down again when global tension between U.S and China increase again.

Raytheon Co (RTN)

Observing RTN share prices movement, we could see the share prices moving sideway between two trendlines. At the current time, RTN support by moving averages and looking to bounce from it. If a bounce happens then RTN will target the top of the triangle. Traders could consider short positions near the top of the triangle when there is a bearish reaction.

Workday Inc (WDAY)

WDAY located near the daily SMA 200 at the current time. Technically, it is expected to bounce from the averages and start a new bullish leg. However, the share prices continue to stick near the averages for several days. It is possible a bearish breakout could happen. Currently, as long as the share prices stay above SMA 200 then WDAY has chance to bounce and resume its bullish trend.