Time to stay bearish to the stock market

President Trump suggested a 0% payroll tax-rate up to the end of the year. The plan brought the U.S stock market to a rally but it might need be enough to reverse current bearish pressure. DJIA futures down more than 500 points today which suggested rocky opening.

Trader and investors will continue to stay sideline and flight to safe-haven assets as the coronavirus and oil price war shroud the market.

Asian & European Stock market

The Asian stock market traded in the red zone. Japan’s stock market down 451.06 points (-2.27%) to 19,416.06, China stock market down 28.24 points (-0.94%) to 2,968.52 and Australia ASX 200 down 213.70 points (-3.60%) to 5,725.90. The European stock market mostly higher as BOE cut interest-rate. DAX Germany up 1.68%, UK FTSE up 0.98%, Euro STOXX600 up 1.42%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA printed fresh low yesterday but managed to bounce from the low to close near Monday high. The index expected to turn lower and test $24,237.52 support level soon. It is better to continue holding short positions for now as there is no good news concerning coronavirus.

Paypal Inc (PYPL)

PYPL dived and tested $100.00 support level. The share prices bounced from the support level and reached the daily SMA 200. Following the global market situation, it seems daily SMA 200 is the best place to enter short positions. The downward movement expected to test $100.00 again and break below it.