US Stock market Technical Analysis May 10, 2019

Tariff implemented, equity market move lower but return to positive

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U.S has implemented an increase of tariff from 10% to 25% against China imported goods today. In a tweet, President Trump noted that there is no need to rush trade talks with China. Asian market initially blown by the tariff implementation but recovered the ground and move to the positive side. European stock market on the other hand trader positive.

It seems traders and investors placed hope that U.S and China will solve the trade situation in the future and avoid full-blown trade wars.

Asian & European Stock market

Asian stock market mostly off the low. Japan’s Nikkei down 57.21 points (-0.27%) to 21,344.92, China stock market up 88.26 (+3.10%) to 2,939.21, and Australia ASX 200 up 15.60 points (+0.25%) to 6,310.90. European stock market also moves higher. DAX Germany up 0.64%, UK FTSE up 0.17%, Euro STOXX600 up 0.49%.

Technical Analysis

Dow Jones Industrial Average (INDU)

US Stock market Technical Analysis May 10, 2019

The bearish pressure in DJIA managed to push the index down below 25,800 in the previous trading day and the bearish pressure might increase today. DJIA next trend will depend on where the index closes at the end of the week. A closure below 25,800 suggesting further bearish movement toward daily SMA 200. On the other hand, a close above 26,000 will help the index to stop current bearish pressure.

International Business Machine (IBM)

US Stock market Technical Analysis May 10, 2019

IBM gapped down and closed at the daily SMA 200. The overall trend of IBM is sideways near the SMA 200 and there is no reaction yet. Traders will wait for the price reaction near SMA 200 to determine the next direction of IBM. We think a bounce will happen from the averages. However, if IBM continues lower and closes below SMA 100 then the bounce scenario will not happen.

Nike Inc (NKE)

US Stock market Technical Analysis May 10, 2019

NKE share prices retreat on the escalating trade tension between the U.S and China. The share prices currently traded near the SMA 100, looking for a bounce. Will NKE manage to bounce from the support level and continue its bullish trend?

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