U.S stock market set to gain on Monday trading

Despite the major forthcoming events, the Fed interest-rate decision at the end of the month, the market set to open the day higher. This week major names will report earnings. There are Facebook (NASDAQ: FB), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG), Caterpillar (NYSE: CAT), Mcdonald’s (NYSE: MCD) and others which mean it will become a busy week.

At the current time, there is not much clue for the long-term direction and traders might want to stay sideline or enter with small positions only.

Asian & European Stock market

Asian stock traded slipped today. Japan’s Nikkei down 50.20 points (-0.23%) to 21,416.79, China stock market down 37.23 (-1.27%) to 2,886.97, and Australia ASX 200 down 9.10 points (-0.14%) to 6,691.20. European stock takes opposite direction against Asian direction. DAX Germany up 0.52%, UK FTSE up 0.30%, Euro STOXX600 up 0.24%.

Technical Analysis

Dow Jones Industrial Average (INDU)

A correction is due in the DJIA index. It might happen before next week FOMC meeting where the Fed will decide interest-rate. However, the market still focused on earnings releases. If DJIA moves lower then 26,000 will become the target level and possible bounce level after FOMC meeting.

Colgate Palmolive Co (CL)

CL broke through the resistance area between $68.30 – $69.00 and continue its uptrend. The share prices continuously bounced from the daily SMA 500 in the previous tests. At the current time, CL is testing the SMA 50. Will a bounce happen again? Alternatively, will CL start bearish correction toward the daily SMA 100?

Dropbox Inc (DBX)

DBX printed a higher high on the daily chart and the share prices manage to climb above SMA 200. At the current time, the share prices under making the bearish correction and soon will reach the averages. Traders could prepare for long positions when DBX hit the averages and printed bullish pattern.