US Stock Market Technical Analysis | March 25, 2021

Support withdrawal and tapering sign caused the market to turn bearish

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The global stock market traded mix in the Asian session. However, the sentiment turned bearish in the European session as most major indices trade on the bearish side. At the current time, DJIA index futures lower nearly 150 points which indicates further bearish movement.

The Fed Jerome Powell hinted that the Fed will start removing the stimulus which has supported the market at one day. It could mean the Fed will switch from loose monetary policy to tight policy where they will increase interest-rate or squeeze liquidity.

Today, traders will continue to observe the market movement and wait until the bearish sentiment recede to add more long positions in equity.

Asian & European Stock market

The Asian stock market mixed today. Japan stock market up 324.36 points (+1.14%) to 28,729.88, China stock down 3.47 points (-0.10%) to 3,363.59 and Australia ASX 200 up 11.80 points (+0.17%) to 6,790.60 . The European stock market trade lower. DAX Germany down 0.96%, UK FTSE down 1.04%, and Euro Stoxx600 down 0.76%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index started moving lower and soon will reach the horizontal level of around 32,000. We think the index will use the level to bounce and continue its bullish movement. However, if the index continues its bearish movement then traders will observe the reaction near the daily SMA 50.

Alcoa Corporation (AA)

AA share prices are in a bullish trend after a new high at $33.45, a level that has not been seen since 2018. At the current time, the share prices seem to make a bearish correction and might reach the horizontal area around $24.00 – $25.00. Long positions could be taken from the area or the daily SMA 50 when the bearish correction happens.

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