Dow set to drop after strong bounce Yesterday
Dow Jones Industrial Averages set to drop today as the futures pointed lower more than 80 points. This week has been full of high-roller movement with Dow dropped more than 1000 points on Monday followed by 500 points bounce on Tuesday. Today the high volume movement looks will happen to the downside.
Traders might want to stay clear under this situation and wait until the market settle the direction.
Asian & European Stock market
Asian stock market traded higher following the U.S market footage. Nikkei up 35.13 points (+0.16%) to 21,645.37, Shang Hai Composite down 61.07 points (-1.81%) to 3,309.58 and Australia ASX 200 up 43.50 points (+0.75%) to 5,876.80. European stock market is also rallying today. DAX Germany up 0.83%, FTSE UK up 0.93%, and Euro STOXX 600 up 1.00%.
Technical Analysis
Dow Jones Industrial Average (INDU)
DJIA bounced from daily SMA 100 after a sharp drop this week. The bounce might be a technical bounce in a response of 10% drop from the top 26,616.71. If the bull could not extend the gain and erase all losses incurred this week, then DJIA could move lower and target daily SMA 200.
Other Watchlist
Speculative bullish setup, need to align with DJIA course of movement to success.
MON – The share prices testing cluster of averages, might bounce upside.
DIS – Strong bullish candle close above daily SMA 200, might continue upside.
EBAY – Almost closed earnings gap, look for long position when the gap closed.