U.S stock set to slide as coronavirus count reach 200,000

The fear of coronavirus will continue to cloud the market even though there is bullish bounce yesterday. DJIA futures down more than 800 points at the current time. Stimulus and financial relief planned by the government but it might not enough to quell current panic in the market.

Traders and investors will choose to continue waiting sideline for now until there is more positive news on the coronavirus development.

Asian & European Stock market

The Asian stock market start moving lower again today. Japan’s stock market down 284.98 points (-1.68%) to 16,726.55, China stock market down 50.88 points (-1.83%) to 2,728.76 and Australia ASX 200 down 340.20 points (-6.43%) to 4,953.20. The European stock market also on the path lower. DAX Germany down 4.51%, UK FTSE down 4.11%, Euro STOXX600 down 3.99%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA has breached 20,000 handles but it immediately stages a comeback the next day. However, the index might come under pressure again today as DJIA futures lower 800 points before the market open. Similar to the previous day analysis, it is better to stick with short positions in the stock market as no positive development yet on coronavirus.

Tesla Inc (TSLA)

TSLA has retreated more than 50% from the top. If the share prices continue lower then there is the daily SMA 200 present below the current level. It is possible the downtrend has not finished yet and TSLA could move lower further 10-20% until the market loses hope. Traders could consider long positions when there are at least two bullish candlesticks on the chart.