Stock market set to trade positively before Biden’s inauguration

The DJIA futures up nearly 200 points before the market open. It seems the market cautiously positive as Biden will be inaugurated this Wednesday. There is an expectation that more stimulus will be announced as Biden took the office. Vaccination is in progress which might show effect in several weeks or months.

We expect a bearish pullback will happen soon but the situation might depend on Biden’s policy announcement and the vaccination result.

Asian & European Stock market

The Asian stock market mostly higher today. Japan stock market up 391.25 points (+1.39%) to 28,633.46, China stock market down 29.84 points (-0.83%) to 3,566.38 and Australia ASX 200 up 79.60 points (+1.19%) to 6,742.60. The European stock market also traded higher. DAX Germany up 0.27%, UK FTSE down 0.05%, and Euro Stoxx600 up 0.06%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA made further bearish closed after the all-time high of 31,223.78. The index might continue lower to test 30,000 and 29,000 handles. A bearish correction is due and traders will observe the index movement for now. If the bearish pressure continues to add up then DJIA might extend the bearish movement toward daily SMA 200.

Las Vegas Sands (LVS)

LVS share prices have climbed above the daily SMA 200 and extended their bullish movement. At the current time, LVS traders lower in a bearish correction and soon will reach the daily SMA 100. If the bearish movement continues then traders will expect a test on the daily SMA 200. Long positions could be considered when the bearish movement stalled and there is a bullish reaction.