Futures indicate lower open

Concerns are brewing up in the market Yesterday after bond yield rising. 10-year treasury note spike above 2.7% first time since 2014. The climb interest-rate mostly expected as the market expects The Fed will increase interest-rate on strong economic outlook. However, the rising bond yield means higher borrowing cost which at the end detrimental to risk asset such as shares.

The market will observe corporate earnings report today. AET, MCD, PFE, and HOG are notables companies reporting before market open.

Asian & European Stock market

Asian stock market closed down. Nikkei down 337.37 points (-1.43%) to 23,291.97, Shang Hai Composite down 34.81 points (-0.99%) to 3,488.19 and Australia ASX 200 down 52.60 points (-0.87%) to 6,022.80. European stock also dipped. DAX Germany down 0.48%, FTSE UK down 0.55%, and Euro STOXX 600 down 0.47%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA might finally start a correction after prolonged bullish movement. The index futures down more than 100 points before market open. If the pressure continues, we might see the index sit at 26,000 handles by the end of the week. Overall, the trend for medium-term stays positive even though the index reaches 26,000. There is no strong reason to take a short position yet for long-term.

Apple Inc (AAPL)

The share prices of AAPL hit its support level and the daily SMA 100. There are high-odds of bounce from the support level, but traders might want to wait until a bullish pattern emerges at the current level. For more aggressive traders might want to place long position at daily SMA 100 with stop order below daily SMA 200.

Chevron Corp (CVX)

CVX currently is in a correction period and showing no sign of reversal yet. There is two possible support level to watch, first around $126.00 and second around $120.00.The share prices downward momentum is strong and might reach both levels soon.