U.S stock market waiting for inflation data as treasury yield climb again

Lower treasury yield could calm the market, but a higher yield could trigger fear. At the current time, U.S 10-year Treasury yield increase to 1.56% today, increased from 1.52% before inflation data. The inflation data expected to record a 0.4% increase. If the number released higher than expected then we might see further weakness in the stock market.

Asian & European Stock market

The Asian stock market is mostly mixed today. Japan stock market up 8.62 points (+0.03%) to 29,036.56, China stock down 1.55 points (-0.05%) to 3,357.74 and Australia ASX 200 down 57.10 points (-0.84%) to 6,714.10 . The European stock market also mixed. DAX Germany up 0.36%, UK FTSE down 0.19%, and Euro Stoxx600 up 0.19%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index continuously printing new all-time high as the yield on U.S 10-year treasury continues to decline. However, the yield starts to rise again today. It seems the index will continue trading near the current level mostly flat until major development is announced.

We think it is better for the index to make a bearish correction, however, the index could continue upward and disregard any bearish news.

Cree Inc (CREE)

Cree share prices were corrected lower from the $129.9 high. The share prices recently reach the daily SMA 100 also the cluster of support levels. On the chart, we could see a lower low print which means the current trend has the probability to switch from bullish to bearish.

We think CREE will bounce from the SMA 100 and start moving upward. However, without any higher high printed, traders might want to be careful holding long positions.