Stock market weaken after talk break down with North Korea

The hope wane after Kim Jong Un – Trump meeting end without any deal. North Korea wants the U.S to lift all sanctions where the U.S is not prepared to do it. President Trump said, U.S not in a rush to reach a deal and citing the meeting is interesting and productive.

From the economic side, The Fed Jerome Powell scheduled to give a speech with the title “Recent Economic Developments and Longer-Term Challenges”. Today speech might not have a big influence on the market as long as the Fed stays dovish on the outlook.

Asian & European Stock market

Asian stock market closed lower. Japan stock market down 171.35 points (-0.79%) to 21,385.16, China Shanghai Composite down 12.87 points (-0.44%) to 2,940.95, and Australia ASX 200 up 18.70 points (+0.30%) to 6,169.00. European stock market also follows the Asian market lower. DAX Germany down 0.11%, UK FTSE down 0.85%, Euro STOXX600 down 0.46%.

Technical Analysis

Dow Jones Industrial Average (INDU)

The index might weaken today after U.S-North Korea news come out without a deal. We have the index traded near 26,000 handles and might continue to stick near the level for a while. There is no clue yet on the next movement, traders will continue to watch the index reaction at the current level.

Colgate Palmolive Co (CL)

CL surpassed its daily SMA 200 and recently turned lower. There is a level around $65.00 which will become the floor for the current bearish attempt. If the share prices manage to move lower below the level then SMA 200 will become the major support level to watch.

Costco Wholesale (COST)

COST share prices located at the intersection between horizontal line, top of the triangle and the daily SMA 200. All levels acted as resistance which should hinder the share prices from moving higher. At the current time, traders will wait for the share prices reaction near the resistance. The overall trend is bearish and a strong bearish pattern will become the confirmation to enter short positions.