U.S stock market to start the holiday-shortened week on the week side
The stock market climbed to settle at a record high last week. It seems portfolio rebalancing is in progress and volatility spikes higher. This week, traders will prepare for high volatility week as the market will prepare for the weekend holiday.
Today, U.S stock futures are traded mostly lower but we might see some surprises later. The market will observe closely the development of Joe Biden’s stimulus plan. It seems the stimulus plan will have tough opposition to tax-hike scheme. Nevertheless, the stock market rally could continue if the stimulus bill passed.
Asian & European Stock market
The Asian stock market is mostly mixed today. Japan stock market up 207.82 points (+0.71%) to 29,384.52, China stock up 16.97 points (+0.50%) to 3,435.30 and Australia ASX 200 down 24.70 points (-0.36%) to 6,799.50 . The European stock market also mixed. DAX Germany up 0.38%, UK FTSE down 0.10%, and Euro Stoxx600 up 0.30%.
Dow Jones Industrial Average (INDU)
DJIA bounced from the horizontal level and formed a flip level. The index is set to continue moving upward and print a new all-time high. However, the index futures currently lower more than 150 points which indicates a possible bearish reversal. If the index starts moving lower again then the flip level around 32,000 will become the level to watch.
Further weakness below the horizontal level will lead the index down to test daily SMA 50 & 100.
Visa Inc (V)
V share prices have made a bearish correction and managed to reach the daily SMA 50 & 100. The share prices bounced from both averages and closed near $215.00. If the share prices could add more bullish pressure then we might see V share prices resume its bullish trend and target a level above $228.23.