Stock market set to open the week lower after record high

Last week, the stock market performed marvelously despite the riot in Capitol. Market participants are focusing on more stimulus deals, vaccine performance, and earnings results. This week, the market might open lower as the Asian stock market and European stock market under pressure.

On the cryptocurrencies ground, bitcoin pulled back from 42,000 level and to as low as 32,627 or nearly 20% pullback. The rush into cryptocurrencies incited by major institution buying. It seems normalization will happen at the current time which could influence the stock market too.

Asian & European Stock market

The Asian stock market mostly lower today. Japan stock market up closed, China stock market down 38.61 points (-1.08%) to 3,531.50 and Australia ASX 200 down 60.70 points (-0.90%) to 6,697.20. The European stock market also under pressure. DAX Germany down 0.39%, UK FTSE down 0.15%, and Euro Stoxx600 down 0.12%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA’s direction continues to point to the upside and there is nothing to do at the moment aside from waiting for a bearish correction. If a bearish correction happens then DJIA is expected to test 30,000 and bounce from it. The DJIA futures currently lower 130 points which indicate a lower opening.

3M Company (MMM)

MMM share prices trade lower after it could not break out above the level around $175.00. The share prices have closed below the daily SMA 50 & 100. If the bearish movement continues then MMM soon will reach daily SMA 200. Traders could consider entering long positions near the level when there is a bullish reaction.