Optimism on economy reopening

The market is slightly optimistic about the reopening of the economy. There might be second wave of coronavirus but as long as the practice of social distancing and health precaution on the work applied then the effect might be minimum.

DJIA futures currently up 90 points and indicate a higher opening. If there is no reopening then we might see the market start moving lower again.

Asian & European Stock market

The Asian stock market slightly higher today. Japan stock market closed for holidays, China stock market up 18.06 points (+0.63%) to 2,878.14 and Australia ASX 200 down 22.50 points (-0.42%) to 5,384.60. The European stock market mixed today. DAX Germany down 0.38%, FTSE UK up 0.47%, Euro STOXX 600 up 0.08%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index bounced from the daily SMA 50 and retest the level near 24,250. At the current time the index expected to continue its movement inside 22,500 – 24,250 until breakout happens. DJIA futures up 90 points which indicates a higher opening level but we think the index will close below 24,250 again.

Square Inc (SQ)

SQ share prices traded near the daily SMA 200 also the trendline flip. If there is a major bearish reaction and the share prices close below daily SMA 200 then traders will expect a new bearish leg to happen. Short positions near the current level might become the option, traders could take.