DJIA futures trade higher as Yellen pushes for stimulus addition

The stock market turned optimistic as Treasury secretary Janet Yellen said stimulus is needed to bring the economy into full recovery. She said the price of doing too little is much higher than doing something big. At the current time, DJIA futures are up 86 points and indicate a bullish opening.

We think the situation will continue under the status quo near the all-time high. Traders will continue waiting for more reactions before jump into major positions.

Asian & European Stock market

The Asian stock market traded mix today. Japan stock market down 218.17 points (-0.72%) to 30,017.92, China stock up 20.81 points (+0.57%) to 3,696.17 and Australia ASX 200 down 92.10 points (-1.34%) to 6,793.80 . The European stock market mostly higher. DAX Germany up 0.73%, UK FTSE up 0.19%, and Euro Stoxx600 up 0.46%.

Technical Analysis

Dow Jones Industrial Average (INDU)

There is no change to the outlook yet, DJIA will continue to stick near the all-time high and looking to add more bullish pressure. Traders will wait until the index makes momentum movement before deciding where the index will move next. We favor a bearish pullback to happen in the index where traders could get a better entry into the stock market.

Consolidated Edison Inc (ED)

ED share prices are trading in a bearish trend but it is currently in an interesting situation. The share prices might print an inverted shoulder-head-shoulder. If the share prices could maintain the positions above the horizontal line at $70.00 and print a higher high above $72.50 then there is a chance for a rally to test daily SMA 200.

Breakout and close above daily SMA 200 will become further bullish confirmation.