Heavyweight to the stock market as coronavirus case surge outside of China

The spread of coronavirus across the global world start to take tolls. Italy, South Korea reported surge of infection and go into lockdown. Aside from both countries, Iran also reported a sudden jump in the case. The stock market across the world dip lower today and set to continue its downward movement for the unforeseeable future.

Not much to expect at this time, traders and investors mostly will monitor the development of coronavirus.

Asian & European Stock market

The Asian stock continue lower today. Japan’s stock market closed on holiday, China stock market down 8.44 points (-0.28%) to 3,031.23 and Australia ASX 200 down 160.70 points (-2.25%) to 6,978.30. The European stock market also traded lower. DAX Germany down 3.50%, UK FTSE down 3.28%, Euro STOXX600 down 3.46%

Technical Analysis

Dow Jones Industrial Average (INDU)

The market set to drop sharply today as DJIA futures down more than 800 points. No improvement to the market situation as coronavirus continues to spread and take victims. Technically, DJIA might target SMA 100 and SMA 200. As long as there is no improvement from the fundamental side, it is only a matter of time DJIA hits the target.

First Energy (FE)

FE share prices expected to start a bearish correction following the path of the global stock market direction today. If FE manages to reach the daily SMA 100 or the horizontal line around $48.60 then traders could prepare to enter long positions. Another level to watch is $50.00.