Cautious market ahead of central bank talk

The stock indices are moving cautiously lower as the market waiting for the spree of speeches from central banks chief. Currently, ECB Mario Draghi is giving a speech about the economy. The head of European central bank mentioned growth is above the trend in Euro area and believe the trend will continue. The comment boosted Euro against U.S dollar, gained more than 50 pips and might continue higher.

On 10.00 AM, the market will watch the release of CB Consumer Confidence which estimated to record 116.1 reading, down 1.8 points from the previous release. Later on 01.00 PM, Fed chief Janet Yellen will give a speech, expect further hawkish comment following the previous week comment.

Other market

The stock market in Asia ended on mixed note, Nikkei and Shang Hai composite gained. Australia ASX 200 is the loser today. European session started on the positive side, but immediately retreat after ECB press conference hawkish comment. The hawkish comment means fewer odds for stimulus continuation which tighten the market.

Technical Analysis

Dow Jones Industrial Averages (INDU)

Dow Jones Industrial Averages closed higher but formed a bearish candlestick pattern. If this candlestick followed through by a sell-off and closed below 21,333 (Friday low), it will trigger further selling. Overall, the trend is up, and traders might want to avoid looking for a short position on the index.

Costco Wholesale (COST)

COST has suffered from recent bearish movement following Amazon (NASDAQ: AMZN) acquisition of Whole Foods Market Inc. The acquisition created rival for COST and overly reacted in recent sell-off. Despite the sell-off in share prices, COST got upgraded by Northcoast and Raymond James. Analysts told the plunge in stock prices created an opportunity which might not be seen in less than three years.

The share prices hit daily SMA 200 and reverse its course after the upgrade, which means major market player is playing the stock prices now. It might become an excellent opportunity to look for a long position, but careful if the share prices move lower below the Monday low.

Blackberry Limited (BBRY)

BBRY is the stock to watch today as it in correction and form a bullish engulfing pattern. The bullish engulfing pattern formed at $10 psychological level which is an indication the bullish trend will continue. Traders could look for a long position with a stop below Monday low.