Stimulus uncertainties and Brexit deadline to weigh the market
A Brexit deal is highly unlikely to happen at the end of this week as the deadline approaches. The global stock market turns cautious and pessimistic nearing the deadline. Aside from that, the U.S stimulus deal also continues unresolved. The discussion extended as The House has passed a one-week federal spending extension.
DJIA futures currently lower more than 200 points despite the FDA approval of Pfizer and BioNtech coronavirus vaccine for emergency use. Next week’s sentiment will be decided by the Brexit conclusion on the weekend and the U.S stimulus talk.
Asian & European Stock market
The Asian stock market mostly lower today. Japan stock market down 103.72 points (-0.39%) to 26,652.52, China stock market down 26.08 points (-0.77%) to 3,347.19 and Australia ASX 200 down 40.50 points (-0.61%) to 6,642.60. The European stock market also under pressure. DAX Germany down 1.52%, UK FTSE down 0.70%, and Euro Stoxx600 down 1.00%.
Technical Analysis
Dow Jones Industrial Average (INDU)
The weekly session soon will end and DJIA set to close the week near 30,000 handles. No change to the outlook yet as the index keeps hanging near the record high. Traders are monitoring closely the development from the fundamental side at the current time. Technically, as long as there is no major bearish reaction from the current level then the index might be able to continue its bullish movement.
TD Ameritrade (AMTD)
AMTD share prices produced an interesting bearish close yesterday. The bearish close formed a possible bearish engulfing and there is a spike in the trading volume. Aside from that, there is a daily SMA 200 present. Traders could regard the current situation either as resistance cleaning or bullish fake-out. The next candlestick close will provide a better clue on what will happen.
If the share prices move lower then it is expected to continue moving inside the triangle consolidation. On the other hand, if bullish continuation happens then AMTD is set to start a new bullish trend.