U.S stock market set to trade higher despite high capitalization
DJIA index closed lower 89.28 points but the index set to open higher today. There is not much clue on the market next direction as Trump soon will leave the White House. Traders and investors seem to proceed with high caution as the current market valuation extremely high.
A bearish pullback is imminent but a large stimulus seems halting the market from moving lower. We might see some movement nearing Joe Biden’s inauguration.
Asian & European Stock market
The Asian stock market mostly higher today. Japan stock market up 25.31 points (+0.09%) to 28,164.34, China stock market up 76.84 points (+2.18%) to 3,608.34 and Australia ASX 200 down 18.10 points (-0.27%) to 6,679.10. The European stock market cautiously lower. DAX Germany down 0.04%, UK FTSE down 0.73%, and Euro Stoxx600 down 0.06%.
Dow Jones Industrial Average (INDU)
No major bearish reaction yet while the DJIA index hanging at the all-time high. The index might continue its upward movement today as the index futures pointed upward 60 points. Similar to the previous day’s situation, there is nothing traders could do at the moment aside from waiting for a bearish correction.
Seagate Technology (STX)
STX share prices breakout above the horizontal line and continue moving upward to as high as $66.69 before starting a bearish correction. The bearish correction currently has reached the daily SMA 50. If the bearish correction continues then traders will obverse STX share prices reaction near the $56.00 level. Long positions could be taken from the daily SMA 100 and the $56.00 level when there is a bullish reaction.
Twitter Inc (TWTR)
TWTR share prices are interesting to watch as it currently moving near the bottom of the bullish channel. If it could bounce from the bottom of the channel then the bullish movement will continue. On the other hand, if a bearish breakout happens then the nearest support level to watch is the daily SMA 200.