US Stock market Technical Analysis July 5, 2018

Stock market up before Fed Minutes

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The stock market bucked gain at the opening of the trading day on hopes of easing from Europe-U.S autos trades. Earlier, U.S ambassador to German reportedly announces the removal of tariff threat by President Trump if EU also removes the tariff on U.S cars.

News from EU-U.S is definitely positive. However, the threat of trade wars has not finished yet as the U.S scheduled to impose a 25% import tariff on China goods on Friday. The tariff planned for up to $34 billion in imported goods. The market situation will depend on how China react or how both parties reach an agreement on the trade issue.

Asian & European Stock market

Asian stock market retreat today. Nikkei closed down 170.05 points (-0.78%) to 21,546.99, Shang Hai Composite closed down 25.15 points (-0.91%) to 2,733.98 and Australia ASX 200 up 32.10 points (+0.52%) to 6,215.50. European stock continue its advance. DAX Germany up 1.02%, FTSE UK up 0.50%, and Euro STOXX 600 up 0.43%.

Technical Analysis

Dow Jones Industrial Average (INDU)

The index has not strike a decisive outcome at the daily SMA 200 after Tuesday bearish close. DJIA opened higher today with triple-digit gains which mean the stalemate situation between the bear and the bull will continue. If the index could continue higher, then we could see it moving between the trendline and daily SMA 200.

Alibaba Group (BABA)

BABA stock price is under trouble following the fundamental situation between U.S and China which worsen each day on the trade line. The share prices retreated from top $211.7 to $184.75 or a loss of almost 12.7%. It is possible for BABA to continue lower despite the share prices hitting major support level. On the chart, if the downward pressure continues, then BABA could reach multiple lows around $165.

LyondellBasell (LYB)

LYB has a similar situation as BABA where the share prices are currently testing the daily SMA 200. If the averages broken downside, then we might see LYB moving down further toward level around $100.

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