US Stock Market Technical Analysis | February 22, 2021

U.S stock market set to trade lower on increasing yield

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DJIA futures are currently lower more than 200 points which indicates a moderate bearish opening. Last week, the U.S 10-year Treasury yield inched higher toward 1.34%. The increase of yield put investors under a cautious tone as it might lead to interest-rate increase or tapering.

If a pullback happens in the stock market then traders will expect the DJIA index to test 30,000 handles. Aside from that, vaccination progress seems to produce better results. New cases of infection and death by coronavirus continue to decline. If the trend continues to show this good progress then a rate-increase or tapering might not be hard to swallow for the bull.

Asian & European Stock market

The Asian stock market mostly lower today. Japan stock market up  138.11 points (+0.46%) to 30,156.03, China stock down 53.72 points (-1.45%) to 3,642.44 and Australia ASX 200 down 12.90 points (-0.19%) to 6,780.90 . The European stock market also trades lower. DAX Germany down 1.22%, UK FTSE down 0.93%, and Euro Stoxx600 down 1.14%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index situation continues to stay sideline near the all-time high. The index printed a new all-time high though with weak bullish momentum. Traders and investors seem to wait for a stimulus announcement for now. If the index makes a bearish pullback then the daily SMA 50 and 30,000 handles will become the support level to watch.

Bed Bath & Beyond (BBBY)

BBBY share prices spiked and reached $53.9 high before retracing lower. The share prices are trading at $26.47 at the closing of the previous week. Traders will monitor the share prices reaction at the $25.00 handle and daily SMA 50 also 100. If the share prices could bounce from the support levels, traders could enter long positions.

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