U.S stock futures turn positive as Treasury yield pulled back

The global stock market was under pressure as U.S treasury yield continue to increase after the Fed’s assurance to not increase interest-rate. Today, the treasury yield dips below 1.7% but maintains a level above 1.68%. If the yield starts moving upward again above 1.7% then we might see a further pullback in the stock market.

Will the Fed and other central bank change their stance on interest-rate if the yield continues to increase? Traders might want to be careful and observe closely the yield change and what central banks will do next.

Asian & European Stock market

The Asian stock market mostly lower today. Japan stock market down 424.70 points (-1.41%) to 29,792.05, China stock down 58.40 points (-1.69%) to 3,404.66 and Australia ASX 200 down 37.70 points (-0.56%) to 6,708.20 . The European stock market also under bearish pressure. DAX Germany down 0.56%, UK FTSE down 0.90%, and Euro Stoxx600 down 0.46%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index printed another record high but closed the day on the bearish side. The index formed a bearish pin bar pattern and might trigger a bearish pullback toward the 32,000 handles. Traders will observe the index near the horizontal level for a possible bullish bounce.

Activision Blizzard Inc (ATVI)

ATVI’s long-term trend is bullish but the share prices currently under bearish correction. It pushed lower below daily SMA 50 and bounce from it recently toward the daily SMA 100. We will see a test on the daily SMA 100 and the horizontal level around $87.50.

If the bearish pressure recedes then traders could enter long positions near the current level or near the daily SMA 200.