US Stock Market Technical Analysis | January 13, 2021

U.S stock market searching for direction

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The stock market futures mostly flat before the opening bell. We are due for a pullback in the stock market but it seems more stimulus planned which bolsters the index near an all-time high. Traders and investors are monitoring coronavirus vaccination and containment policy. Aside from that, Joe Biden expected to announce his economic plan on Thursday.

Aside from the issues above, the yield on the 10-year treasury increased to 1.18% or the highest since March. The increase in yield might call for raise in interest-rate which could hinder the upward movement in the stock market.

Asian & European Stock market

The Asian stock market mixed. Japan stock market up 292.25 points (+1.04%) to 28,456.59, China stock market down 9.69 points (-0.27%) to 3,598.65 and Australia ASX 200 up 7.50 points (+0.11%) to 6,686.60. The European stock market mostly under pressure. DAX Germany down 0.19%, UK FTSE down 0.19%, and Euro Stoxx600 down 0.02%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index continues hanging near the all-time high without a major sign of a bearish correction. The index might continue trading near the high for now but we think a bearish correction is due. Joe Biden’s inauguration or economic policy at the end of the month could become the trigger.

Meanwhile, traders will continue waiting while scaling out of long positions in equity.

Kraft Heinz (KHC)

KHC share prices are interesting to watch as it is trading near the daily SMA 200 and the bullish trendline. If the share prices could maintain its positions above both levels then traders will expect a bounce. On the upside, there is a bearish trendline to watch.

If a bullish bounce happens then KHC is set to trading inside the triangle pattern shown on the chart.

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