Treasury yield rise to put the market under bearish view
The bullish movement of the U.S stock market continues yesterday as optimism on the vaccine and strong corporate results boosted the market. However, the U.S treasury note rises to 1.30% on Tuesday’s trading session. Higher yield could drive traders and investors out of the equity market to the bond market. It could also mean the Fed might start tapering or rate-increase in the future.
DJIA futures trading not far from the 0 lines and might trade in the negative zone before the market open.
Asian & European Stock market
The Asian stock market mixed today. Japan stock market down 175.56 points (-0.58%) to 30,292.19, China stock closed and Australia ASX 200 down 32.10 points (-0.46%) to 6,885.20 . The European stock market opens lower. DAX Germany down 0.75%, UK FTSE down 0.52%, and Euro Stoxx600 down 0.60%.
Dow Jones Industrial Average (INDU)
DJIA index printed another record high yesterday. The index might continue hanging near the all-time high while waiting for a trigger to move. Technically, we are expecting a bearish pullback toward 30,000 handles again. However, the index might continue printing new all-time high without any pullback. It is time to continue watching the sideline.
Waste Management (WM)
WM share prices look like trading inside the triangle pattern as the share prices traded lower slowly. The share prices have reached the daily SMA 200 and might attempt to bounce from it. Traders could use the moment to enter long positions with a stop below SMA 200 while waiting for a breakout. We expect a bullish breakout will happen and WM will continue its bullish trend.