Fear of coronavirus second wave drive the market down

U.S stock market set to open lower today following the resurgence of coronavirus cases in U.S also the world. The number of cases rises to more than 8 million now with more than 430k death. We might not see another shutdown and it will depend on how the government approach to reducing the spread of the virus.

At the current time, traders might want to scale out of long positions while monitoring the development of the coronavirus new cases.

Asian & European Stock market

The Asian stock market dived today. Japan stock market down 774.53 points (-3.47%) to 21,530.95, China stock market down 29.71 points (-1.02%) to 2,890.03 and Australia ASX 200 down 128.00 points (-2.19%) to 5,719.80. The European stock market also moves lower. DAX Germany down 0.93%, FTSE UK down 1.12%, Euro STOXX 600 down 0.69%

Technical Analysis

Dow Jones Industrial Average (INDU)

The bearish pressure on the DJIA index expected to continue today as the DJIA futures lower more than 600 points. Similar to the previous analysis, DJIA will trade inside the 24,250 – 26,000 area with a bearish bias for now. Traders will hold short positions or wait until the index bearish momentum recedes before taking any long positions in equity.

Visa Inc (V)

The $200.00 handle in Visa has been reached and the share prices rejected from it. If the share prices continue lower then it is expected to test the daily SMA 200 and $180.00. Traders will wait for a reaction from both support levels. A bullish reaction from the level could trigger a bounce and short-term bullish continuation.