Optimism building after the Fed purchase plan

The stock market running on the positive sentiment after the Fed announces that they will buy individual corporate bonds. It is the assurance from the Fed that they will support credit markets during the coronavirus. Aside from news, Trump administration said they are preparing $1 trillion infrastructure proposals.

Today, the market will observe the release of retail sales data. Core Retail Sales m/m expected to increase 5.5% m/m. Retail sales expected to increase by 7.9%.

Asian & European Stock market

The Asian stock market sharply higher today. Japan stock market up 1051.26 points (+4.88%) to 22,582.21, China stock market up 41.72 points (+1.44%) to 2,931.75 and Australia ASX 200 down 222.50 points (+3.89%) to 5,942.30. The European stock market follows Asia. DAX Germany up 2.79%, FTSE UK up 2.22%, Euro STOXX 600 up 2.22%

Technical Analysis

Dow Jones Industrial Average (INDU)

Yesterday, the DJIA index projected will move sharply lower as the futures lower more than 600 points. There was bearish movement but the index reversed and closed higher for the day. The global stock market also traded higher today. At the current time, DJIA futures up more than 400 points which indicates a bullish continuation.

On the upside, traders will watch daily SMA 200 and 26,000 handles.

Avis Budget Group (CAR)

CAR share prices recovered above the daily SMA 200 and climbed above the previous ascending triangle top. At the end, the share prices start moving lower toward the SMA 200. We could see the price stick near the averages at the current time. If CAR share prices could rally from the averages then traders will expect another test on the level around $30.00 or the ascending triangle top.