Stock market set to trade lower on bond yield increase
Asian stock market and European stock market trading lower, following the Wallstreet sell-off yesterday. Traders and investors seem to return from holiday and pricing in more aggressive tightening and rate-increase this year. The move was incited by a faster increase in inflation which topped 7%.
Aside from U.S inflation, global market inflation also increase at an alarming rate. Today, the UK reported an inflation increase which has not been seen since 30 years ago. If the inflation trend continues the same as the current time then traders will expect a bearish year for the stock market.
Dow Jones Industrial Average (INDU)
DJIA index continues the bearish correction and soon will reach the daily SMA 200. Yesterday, the index made a bearish close below the trendline which might confirm the trend switch from bullish to bearish. At the current time, the index futures are lower by 200 points which indicates further weakness today.
Home Depot Inc (HD)
HD share prices might have formed a double top pattern and currently undergo bearish correction. If there is no change to the current bearish pressure then we might see the share prices trading near the daily SMA 200 and the horizontal line around $340.00. A bullish bounce reaction from both support levels might indicate a bullish continuation.