Massive freefall in the global stock market

The stock market extremely lower today as new coronavirus cases popping up in previously non-infected countries. Pandemic might not be avoidable at the current rate. In the previous day, Dow Jones Industrial Averages down more than 1000 points. Today, the DJIA futures are lower 400 points before the market open.

Traders will expect a bearish continuation in today’s trading session. Moreover, less confidence in the growth will cloud the market. The rate of infection and death in China might slow down but it is not happen worldwide. If the virus could not be tackled in March then it will hit the world economy hard.

Asian & European Stock market

The Asian stock in full retreat today. Japan’s stock market down 805.27 points (-3.67%) to 21,142.96, China stock market down 111.03 points (-3.71%) to 2,880.30 and Australia ASX 200 down 216.70 points (-3.25%) to 6,441.20. The European stock market also give up a lot of floor. DAX Germany down 4.38%, UK FTSE down 3.86%, Euro STOXX600 down 3.88%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA is in a freefall mode and intensified each day. The index fell below the SMA 200 and nearly 20% from the top 29,568.57. Under the current situation, it is better to stay out of the market or stay short if traders have entered positions. The index might reach 25,000 support level today.

Amazon Com (AMZN)

AMZN share prices are getting near the daily SMA 200. Not much confidence in the current situation as the world facing possible pandemic. If the situation got worse then AMZN share prices might easily slice below SMA 200. Traders will observe the current share price reaction before placing any positions. If AMZN moves below the averages then traders could enter short positions when retest of SMA 200 happens.