DJIA futures +104 points, time to buy the dip?

U.S stock market set to open higher today following the positive cue from DJIA futures. However, the situation could change radically depending on the market mood on coronavirus. Death toll continue to rise in China, 361 death in China reported and 1 death outside China happen at the end of the week.

If a bullish movement happens then it could be a temporary corrective movement. As long as the news continues negative and fearful then the market will continue its downward track.

Asian & European Stock market

The Asian stock mostly lower. Japan’s stock market down 233.24 points (-1.01%) to 22,971.94, China stock market down 229.92 points (-7.72%) to 2,746.61 and Australia ASX 200 down 93.90 points (-1.34%) to 6,923.30. The European stock market slightly higher. DAX Germany up 0.18%, UK FTSE up 0.38%, Euro STOXX600 up 0.04%

Technical Analysis

Dow Jones Industrial Average (INDU)

Fear of coronavirus brought DJIA lower last week. The bearish momentum looks strong and might continue this week. However, the index might attempt to bounce from the daily SMA 100 as DJIA futures pointed up more than 100 points. It is not a suggestion to start entering long positions in equity.

Traders will prepare for further weakness as there is no good news on the coronavirus situation yet.

TJX Cos Inc Com (TJX)

TJX pulled lower, similar to the major indices in the U.S, the share prices might continue its bearish correction. At the current time, TJX traded near the daily SMA 100. If a bounce happens then traders will expect SMA 50 to act as resistance.

Long positions might be considered if the share prices could reach the daily SMA 200 and form a bullish pattern.