US Stock market Technical Analysis January 12, 2018

Stock bull spur on dollar weakness

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U.S dollar index falls this week and moving near previous year low. The weakness has an inverse correlation with the stock market, and traders could find the stock futures up. Dow Jones Industrial Averages futures up more than 100 points before market open.

Even though analysts warned possible bubble, there is nothing to stop the DJIA index from reaching 26,000 yet. The bull is riding the market up and trampling analysts who think it is time to go short. It is better for traders to stay long until the trend broken and major reversal pattern appear.

Inflation data and retail sales data will be under the spotlight today. Consensus expect CPI come out increased 0.1%, core CPI up 0.2%, core retail sales up 0.3%, and retail sales up 0.5% MoM.


Asian & European Stock market

Asian stock market traded mostly higher today. Nikkei down 56.61 points (-0.24%) to 23,653.82, Shang Hai Composite up 3.97 points (+0.12%) to 3,429.32 and Australia ASX 200 up 2.50 points (+0.04%) to 6,070.10. European stock market traded higher. DAX Germany up 0.24%, FTSE UK up 0.25%, and Euro STOXX 600 up 0.18%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA getting near to 26,000, it is halfway from 25,000 and looks like will be reached in several days/weeks. After the index reached 26,000, there is the possibility of profit taking, but it is better for traders to stay flat until strong reversal happen.

Pepsico Inc (PEP)

PEP come into the radar after the share prices hit top trendline and start a correction. Currently, the share prices moving near its daily SMA 50 and might bounce from it. Traders could look for a long position at SMA 50,100, 200 and the uptrend line.

Procter & Gamble (PG)

PG share prices move down after recent rally above the daily SMA 200. The price looks will retest the broken SMA 200 and the trendline. If the share prices could bounce from both support level, traders could see PG rallying to test previous year high.

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