Stock market set to tumble as gold shine

DJIA futures lower more than 700 points is a major bearish indication for today’s trading session. Coronavirus continues to hit new countries, infection rate and death tolls continue to rise at an alarming rate. At the current time, the total infection reaches 100,000 with 3,400 deaths.

Traders will stay defensive in the equity market while waiting for U.S job data today.

Asian & European Stock market

The Asian stock market underwater today. Japan’s stock market down 579.37 points (-2.72%) to 20,749.75, China stock market down 37.17 points (-1.21%) to 3,034.51 and Australia ASX 200 down 179.50 points (-2.81%) to 6,216.20. The European stock market dived. DAX Germany down 3.65%, UK FTSE down 3.54%, Euro STOXX600 down 3.77%

Technical Analysis

Dow Jones Industrial Average (INDU)

The index futures are heavily sold today before the market opens and warned traders to avoid taking long positions in the equity market. It is not out of expectation as the index has fallen below the daily SMA 200. Previous bullish correction turned before it could touch the averages.

At the current time, DJIA futures down more than 700 points. DJIA might close below 26,000 at the end of the day and ready to extend its bearish move.

Kinross Gold (KGC)

Gold is a good hedge against “fear” and uncertainties. When everything moves down, it is one of the few which will shine. KGC share prices bounced from the daily SMA 50 and continue higher. If the share prices make the bearish correction then traders could enter long positions near the horizontal line shown on the daily chart.