U.S. stocks market rallies after Europe tariff called off

The stock market under pressure at the opening market and recover wholly after Trump speech at Davos. On Wednesday, Trump called-off Europe tariff related to Greenland as a deal framework has been reached. DJIA index up 760 points (1.57%) , S&P500 up 107 points (1.59%), and Nasdaq up 405 points (1.77%). Traders who entered long positions during the downturn, could hold the positions now expecting more record high.

Dow Jones Industrial Average (INDU)

DJIA index climb and erased previous day’s losses and now on the path upward to target a new record high. The bearish correction has ended, and the index almost closed the bearish gap yesterday. It might be a matter of time until the index reach 50,000 handle. Under current situation, it is better to stick with long positions as the index structure is bullish. A breakout and close below 48,428 or below 48,000 might confirm the start of bearish leg.

Apple Inc. (AAPL)

AAPL share prices is under bearish correction and currently reached the EMA 200 also the Fibonacci Retracement 50%. We might see the price stall near the level and a bounce reactions could happen. When there is strong bounce reactions, traders could enter long positions. There are earnings report scheduled on 29th January which could become the decider whether AAPL bounce from the EMA or broke below it.