US Stock market Technical Analysis July 11, 2019

Second day of speech, more dovish comment from Jerome Powell?

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In the previous day, the stock market turned positive after the Fed Jerome Powell speech sounded dovish. Traders and investors grew more certain that the Fed will cut rate in this month FOMC meeting. DJIA futures currently up more than 100 points before the second-day speech by Powell.

From the economic data, U.S CPI increase 0.1% m/m compared to 0.0% expectation. Core CPI increase 0.3% vs. 0.2%.

Asian & European Stock market

Asian stock market turns positive after previous day dovish speech by Jerome Powell. Japan’s Nikkei up 110.05 points (+0.51%) to 21,643.53, China stock market up 2.46 (+0.08%) to 2,917.76, and Australia ASX 200 up 26.30 points (+0.39%) to 6,716.10. European stock market mixed. DAX Germany down 0.18%, UK FTSE down 0.08%, Euro STOXX600 up 0.12%.

Technical Analysis

Dow Jones Industrial Average (INDU)

How far the index could move further upside? There is no certain answer to the question yet. The index printed a fresh all-time high yesterday and could continue further upside. 27.000 is not far and might become the level which decides DJIA next direction. At the current time, wait for further reactions near all-time high before placing any positions.

Caterpillar Inc (CAT)

CAT is at a crucial point where the share prices testing daily SMA 200 and the top of the channel. It is either bounce or return to the bullish trend inside the channel. Traders will wait for the reaction from the current level before placing long positions.

Eaton Corporation (ETN)

ETN traded inside a large triangle pattern and the share prices currently moving lower to reach the bottom of the triangle. Traders could use the moment to look for long positions when the share prices reach SMA 200 or the bottom of the triangle.

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