Massive action to be taken to support the economy

The stock market in Asia mostly higher despite the worst than expected data released by China. Manufacturing activity slowed down to record low in February. Aside from that, China Caixin PMI data come out at 40.3 vs. 45.7. Despite the situation, it seems the market expects PBOC will take massive action to support the economy with stimulus.

DJIA futures down 228 points before the market opens and indicating further bearish continuation. The Fed expected to cut interest-rate or pour the market with aggressive stimulus. Although it could incite bounce in the market, it might be temporary.

Asian & European Stock market

The Asian stock slightly higher today. Japan’s stock market up 201.12 points (+0.95%) to 21,344.08, China stock market up 90.63 points (+3.15%) to 2,970.93 and Australia ASX 200 down 49.70 points (-0.77%) to 6,391.50. The European stock market mostly lower. DAX Germany down 1.65%, UK FTSE down 0.58%, Euro STOXX600 down 1.16%

Technical Analysis

Dow Jones Industrial Average (INDU)

Technically, it is hard to predict where DJIA will find support and start a bullish bounce. The index continues its lower movement with strong momentum and it might not stop yet. Under the current situation, traders will watch round number levels such as 25,000, 24,000, 23,000 and so on. Without slowing down in the momentum and higher high printed then let the index continue its freefall.

Electronic Arts Inc (EA)

EA Share prices at a cross-section, it tested the daily SMA 200 and the trendline. After the test traders could see a bounce from both support levels. If EA could maintain the level above both support levels then it might start a bullish correction.

However, it is possible the share prices could continue lower and close below daily SMA 200 and resume its bearish trend.