U.S stock market recover after drop

The situation of stock market is choppy today as it attempt to recover after drop into the mid-session. The drop happened as traders assess Trump’s new auto tariff and planned future tariff. Most of the major indices are trading near the opening level now and slightly positive. We might see the index trading sideways this week. Under current situation, it might be better to wait and see, also make use of major drop in share prices as chance to enter long positions.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index pushed lower and tested the daily SMA 200 today. We could see bounce reactions where the index recover most of the losses. If the index could continue to maintain the bullish pressure, then there is chance of upward continuation. Aside from immediate bullish scenario, there is chance that the index stall and start consolidating near the daily SMA 200.

Intel Corporation (INTC)

INTC share prices made bullish recover and recover above the daily SMA 200. At the current time, the share prices is at a cross point. If the share prices could continue moving upward and print new higher swing high, also close the gap, then there is chance of bullish continuation. However, after gap close, there is possibility that the share prices started another bearish leg to target a new lower swing low.

The key for the share prices to maintain bullish outlook is to stay above the daily SMA 200.