Stock market significantly lower ahead of Trump-Kim meeting

The stock market across the world pulled back today on anticipation of President Trump and North Korea’s leader Kim Jong Un. Trump tweeted in the previous day that North Korea will have awesome economic potential if the leader agrees on denuclearization.

In the previous day, The Fed Jerome Powell said the U.S economy is healthy but warn of a possible slowdown. This could be a confirmation there won’t be rate-hike soon. Will it turn into a rate cut?

Asian & European Stock market

Asian stock market closed higher. Japan stock market up 107.12 points (+0.50%) to 21,556.51, China Shanghai Composite up 12.31 points (+0.42%) to 2,953.82, and Australia ASX 200 up 21.90 points (+0.36%) to 6,150.30. European stock market turned lower. DAX Germany down 0.75%, UK FTSE down 0.77%, Euro STOXX600 down 0.62%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA drifted lower but manage to close above 26,000 in the previous day. The index futures pointed lower in Asian and European market which suggest weak day ahead. If the index could maintain the close above 26,000 the rest of the week then we might see it traded higher toward 27,000.

Lockheed Martin Corp (LMT)

LMT overall trend is bearish and the share prices just recently make it back to the SMA 200. No reaction yet from the averages and the share prices stick near it. Traders will wait for reactions from the averages. A strong bearish pattern will become a sign to enter short positions.

Seagate Technology (STX)

STX situation is similar to the situation of LMT share prices. It is currently challenging the daily SMA 200 and will wait for further reaction at the averages. There is a bearish trendline near the averages which provide us with the confluence of resistances. Traders could take short positions with the gap level $41.79 as a medium-term target.