US Stock market Technical Analysis May 15, 2019

Focus return to economic data and earnings

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The stock market is in flight mode as U.S-China trade tension intensify. But, traders and investors set away the sentiment in the previous day and closed major indices on the positive side. Today, the stock market might be ready for another round of bearish pressure as the index futures pointed lower.

Core retail sales, industrial production, business inventory and speech by The Fed Randal Quarles are under focus today. On the corporate earnings, Macy’s (NYSE: M), and Cisco (NASDAQ: CSCO) set to report earnings results.

Asian & European Stock market

Asian stock market rise after previous day loss. Japan’s Nikkei up 121.33 points (+0.58%) to 21,188.56, China stock market up 55.07 (+1.91%) to 2,938.68, and Australia ASX 200 up 44.30 points (+0.71%) to 6,284.20. European stock market takes the lower path. DAX Germany down 0.50%, UK FTSE down 0.08%, Euro STOXX600 down 0.33%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA reached the daily SMA 200 and 100 before turned upside yesterday. The index was under pressure as the trade war between the U.S and China intensified. Today, the index futures positioned at -73 points which mean a lower open on the card. Technically, if the averages could hold-off the bearish pressure then we could expect bounce will happen soon.

However, the fundamental situation has more weight and trade war between the U.S and China could worsen anytime China implemented retaliation.

Jabil Inc (JBL)

JBL rallied after the share prices bounced from the daily SMA 200. It printed $31.5 high before started a bearish correction. At the current time, the share prices have corrected 38.2% from the top and might continue lower to test 50% retracement. If the global market situation turned better then JBL has potential to bounce from the retracement level and SMA 200.

Texas Instruments Inc (TXN)

TXN situation is similar to the situation of JBL share prices. The share prices reached the 38.2% Fibonacci retracement and showed a bullish reaction. It is possible for the share prices to continue lower and test SMA 200 and the 50% retracement level. Traders could prepare for long positions with maximum tolerance near $100 or 61.8% retracement. A lower movement below $100 will develop into a long-term bearish trend.

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