US Stock market Technical Analysis March 16, 2020

Massive interest-rate cut button pressed by the Fed

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The Fed made another emergency rate cut at the weekend which put the U.S interest-rate to zero. It is a massive 100 points cut and shown the market that the growing situation on coronavirus is serious to the economy. U.S futures hit “limit down” of 5%, traders will prepare for another bearish pressure toward 20,000 handles today.

Asian & European Stock market

The Asian stock market drops sharply today. Japan’s stock market down 429.01 points (-2.46%) to 17,002.04, China stock market down 98.17 points (-3.40%) to 2,789.25 and Australia ASX 200 down 537.30 points (-9.70%) to 5,002.00. The European stock market also under massive pressure. DAX Germany down 8.39%, UK FTSE up 7.59%, Euro STOXX600 up 7.73%

Technical Analysis

Dow Jones Industrial Average (INDU)

It is not a bearish pullback anymore, the DJIA index is in a major bearish trend and set to reach 20,000 handles soon. A touch on 20,000 handle means a 30% pullback from the top. Under the current situation, it seems the bearish pressure will continue and the index might move further lower below 20,000. Will 50% bearish correction happen? It is possible.

Walt Disney (DIS)

Traders will stick to the long-term outlook in the current bearish market. On the DIS monthly chart, we could see a possible bounce level at 50% ($84.28). But, the stronger level located near the monthly SMA 200 and 61.8% Fibonacci Retracement ($67.96). Traders will assume $70.00 is the best level to take long positions if DIS manages to reach it.

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