Possibly “No deal” until 2020, the stock market set for a rocky day
President Trump said it is better to wait until the 2020 election before striking deal with China but open for a deal if it is “right”. The comment drives the global stock market to the negative area. It is a negative comment for the market, especially when the time for tariff implementation toward China’s products soon.
The stock market may continue its downward movement today and traders might want to stay sideline for now while waiting for further development of trade negotiations.
Asian & European Stock market
The Asian stock market mostly lower. Japan’s stock market down 149.69 points (-0.64%) to 23,379.81, China stock market up 8.89 points (+0.31%) to 2,884.70, and Australia ASX 200 down 150.00 points (-2.19%) to 6,712.30. The European stock market mixed today. DAX Germany up 0.39%, UK FTSE down 1.04%, Euro STOXX600 down 0.09%
Dow Jones Industrial Average (INDU)
DJIA finally make a significant bearish close yesterday and the bearish pressure might continue as President Trump commented that there might be no deal until next year U.S election. It is a bearish news for the market and the trend might have change from bullish to bearish for short-term.
Similar to the previous analysis, DJIA might pullback lower and target 27,000 handle.
JD Com (JD)
A breakout above ascending triangle pattern has happened and JD continues its bullish trend. We have a bearish pullback toward the breakout line and the share prices found support near it. If the bullish trend will continue then JD expected to bounce from the horizontal line or the bullish trendline below it.
Mckesson Corporation (MCK)
MCK trend is bullish inside the channel and currently, the share prices move lower to test the daily SMA 50. Below the averages, there is a horizontal support line around $137.50. Traders could look for long positions near SMA 50 or the $137.50 support level. If the share prices continue moving lower then the bottom of the channel is the level to watch.