U.S stock market set to rally before Fed speech

Dow Jones Industrial Averages futures up more than 80 points and indicate higher opening. Traders will take a close look at The Fed member speeches today especially by Jerome Powell who succeed  Janet Yellen.

This week, the market has been in a rough trading environment. The rising bond yield and projected flat inflation are factors which contribute to the weakness in the market. We could expect both factors will continue to play a major part in market movement next week.

Asian & European Stock market

Asian stock market firmly climbs upward. Nikkei up 156.34 points (+0.72%) to 21,892.78, Shang Hai Composite up 20.68 points (+0.63%) to 3,289.24 and Australia ASX 200 up 48.90 points (+0.82%) to 5,999.80. European stock market also on the upward track. DAX Germany up 0.30%, FTSE UK down 0.14%, and Euro STOXX 600 up 0.22%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA bounced from its daily SMA 100 and headed higher. However, the index could not reclaim level above the SMA 50 and currently moving near it. Will the index continue upward above the SMA and break above the red trendline? Alternatively, will it continue downward to test daily SMA 100 again?

Walmart Inc (WMT)

WMT share prices experienced major setback as it loses more than 15% of its value since the top $109.98. The downward movement looks have more downside room toward 61.8% retracement around $90.00 and daily SMA 200. Traders could look for a long position at both levels if the selling pressure recedes.

Yum! Brands Inc (YUM)

YUM share prices are in consolidation period near the daily SMA 200. We could find a triangle pattern and the range between daily SMA 100&200. Traders could prepare for a breakout and ride the direction either upward or downward.

Other Watchlist

DIS – Return above daily SMA 100 & 200. Look for the reaction when retest happen. If there is a bullish reaction, then traders could place long position.