No support for the market as coronavirus continues to spread

The stock market set to continue its lower path following the weakness in Asia and European sessions. There is no positive news on the coronavirus situation. More people infected and increasing death tolls could only bring the dark cloud to the market.

U.S health officials also warned that coronavirus “likely” will continue to spread throughout U.S. Traders might want to avoid long positions in the risk-assets for now and stay in cash or choose safe-haven assets.

Asian & European Stock market

The Asian stock mostly lower today. Japan’s stock market down 179.22 points (-0.79%) to 22,426.19, China stock market down 25.12 points (-0.83%) to 2,987.93 and Australia ASX 200 down 158.50 points (-2.31%) to 6,708.10. The European stock market on track lower. DAX Germany down 0.98%, UK FTSE down 0.73%, Euro STOXX600 down 1.09%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA tumbled nearly 10% from the top and currently has reached the daily SMA 200. It seems the bearish pressure will continue under the current strong bearish movement. No bullish sign yet and traders should continue to stay sideline for now. The case of coronavirus become widespread and WHO preparing for a possible pandemic.

International Business Machine (IBM)

IBM experienced major selling yesterday and fell below the flip level around $156.00. The share prices closed near daily SMA 50 with an almost marubozu pattern. It means the bearish pressure expected to continue and IBM will test the daily SMA 100 & 200. If the share prices could maintain the position above both averages then a temporary bounce may happen.