The market set to continue bearish pressure after gloomy outlook

The Fed announced no change in the interest rate and there might be no change at least until 2022. U.S GDP growth projected to contract 6.5% this year but might bounce 5.0% next year. Traders and investors shrug this projection and determined that the market will take a long-time to recovery.

At the current time, concern shown on the second wave of coronavirus infection after the economy reopening. It seems the rate of infection continue to grow moderately. Although it is not good news, traders and investors will continue to monitor the change in policy and development on the coronavirus.

Asian & European Stock market

The Asian stock market mostly lower today. Japan stock market down 652.04 points (-2.82%) to 22,472.91, China stock market down 22.86 points (-0.78%) to 2,920.90 and Australia ASX 200 down 187.80 points (-3.05%) to 5,960.60. The European stock market also under pressure today. DAX Germany down 2.28%, FTSE UK down 2.24%, Euro STOXX 600 down 2.27%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index lower in the previous trading day and might continue its bearish movement in today’s trading session. DJIA futures currently down more than 500 points. A correction toward the daily SMA 200 is imminent and traders will observe the reaction near the averages for a clue in the next direction.

Failure to bounce from the daily SMA 200 will trigger selling and might be a bearish continuation for the medium-long-term.

Automatic Data Processing (ADP)

ADP share prices have reached the daily SMA 200 and show a bearish reaction. It seems the share prices also reach the top trendline. Traders could consider short positions at the current level with the bottom trendline as the target. If another bullish close happens above the daily SMA 200 then traders might consider the trend change from bearish to bullish.