US Stock market Technical Analysis July 23, 2020

Stimulus, bailout hope to boost the market

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Investors and traders moved away from the U.S dollar as EU leaders have agreed upon massive coronavirus stimulus. The selling of the U.S dollar also intensified as Treasury Secretary Mnuchin reportedly was looking for a bigger government stimulus package than previously expected.

Meanwhile, the stock market sentiment boosted by the hope that a larger stimulus will be given. However, the U.S-China situation might get worse after China’s consulate ordered to close. Traders and investors are waiting for China’s retaliation to determine if the conflict will become large-scale or not.

Asian & European Stock market

The Asian stock mostly lower today. Japan stock market closed for the day, China stock market down 8.05 points (-0.24%) to 3,325.11 and Australia ASX 200 up 19.40 points (+0.32%) to 6,094.50. The European stock market on the other hand trade higher. DAX Germany up 0.62%, FTSE UK up 0.70%, Euro STOXX 600 up 0.46%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index closed near the 27,000 handles. No major breakout of the 26,000 – 27,000 range yet. However, the DJIA futures currently up more than 100 points. It is possible a breakout could happen in today trading session. If the index could breakout above 27,000, there is June high to challenge before the index could set free to target all-time high.

AES Corp (AES)

AES bullish correction continues smoothly and soon will reach the daily SMA 200. Will the share prices breakout above daily SMA 200 and continue its bullish movement? Or will it get rejected and start another bearish trend below the SMA 200?

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