U.S stock market set to open higher as retail buying mania recede

The shares of Gamestop (GME) and AMC Entertainment (AMC) significantly lower after buying mania which happened last week. It seems the buying frenzy has stopped and the market might return to its normal trading day. At the current time, traders’ and investors’ attention will focus on stimulus discussion once again.

Republican congress proposed a smaller size of stimulus proposal to Joe Biden and it will be discussed this week.

Asian & European Stock market

The Asian stock market on the rise today. Japan stock market up 271.12 points (+0.97%) to 28,362.17, China stock market up 28.40 points (+0.81%) to 3,533.68 and Australia ASX 200 up 99.60 points (+1.49%) to 6,762.60 . The European stock market also climbs higher. DAX Germany up 1.00%, UK FTSE up 0.67%, and Euro Stoxx600 up 1.07%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index made a bullish close yesterday above the 30,000 handles. The index futures currently higher 245 points which indicate opening above the daily SMA 50. If the index could close above the averages with a strong bullish close then it will continue the bullish trend.

On the other hand, if the index weakens then the daily SMA 100 will become the next target.

Target Corp (TGT)

TGT share prices look moving upward in a bullish channel. The share prices corrected toward the bottom of the channel and the SMA 50. Traders could use both levels to look for a long position on bullish reactions. If the share prices breakout below both support levels then traders will observe the reaction near the daily SMA 100.