Stock futures gained on strong earnings and rewinding of retail buying mania

DJIA futures are currently higher than 100 points after Amazon (AMZN) and Alphabet (GOOG) topped analysts’ expectations. Both share prices climbed after the market close. However, Amazon’s gain reversed as Jeff Bezos will step down as CEO and become executive chairman of the board. Meanwhile, Alphabet climbs more than 7% in after-hours trading.

On the retail trading ground, rewinding continue as Gamestop and other shares that went up together have relinquished most of their gain. Traders and investors will continue to focus on earnings reports today.

Asian & European Stock market

The Asian stock market on mixed today. Japan stock market up 284.33 points (+1.00%) to 28,646.50, China stock market down 16.38 points (-0.46%) to 3,517.31 and Australia ASX 200 up 62.00 points (+0.92%) to 6,824.60 . The European stock market takes the bullish path. DAX Germany up 0.84%, UK FTSE up 0.72%, and Euro Stoxx600 up 0.90%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index pressured below 30,000 handles after previous buying mania by retail traders. The bearish pressure does not last long as the index has bounced from the daily SMA 50 and closed above 30,000 handles. At the current time, the index futures are gaining. If there is no change to the sentiment then we might see a bullish continuation today.

Kroger Co (KR)

KR share prices breakout above the bearish trendline also the cluster averages to return to the bullish trend. The share prices launched upward to as high as $42.99 and reach the previous bullish channel. However, the upward movement reversed immediately and the share prices have reached the daily SMA 200.

Traders could use the moment to enter long positions on the bullish reaction from the averages.