US Stock market Technical Analysis May 16, 2019

Trade tension wane, a delayed tariff on auto to give the bull room to breath

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U.S stock market burned by the bear but manage to recover its losses this two days. The recovery helped by President Trump plan to delay auto tariff by six months. It is news to cheer when the current trade war between U.S-China intensify. Today DJIA futures pointed upward more than 70 points suggesting higher opening.

On the technology ground, President Trump takes aim at Huawei after he signed executive orders for U.S telecommunication network to ban the use of equipment supplied by foreign companies.

Asian & European Stock market

Asian stock market mixed. Japan’s Nikkei down 125.58 points (-0.59%) to 21,062.98, China stock market up 17.03 (+0.58%) to 2,955.71, and Australia ASX 200 up 43.60 points (+0.69%) to 6,327.80. European stock market bounce from low. DAX Germany up 0.71%, UK FTSE up 0.17%, Euro STOXX600 up 0.35%.

Technical Analysis

Dow Jones Industrial Average (INDU)

US Stock market Technical Analysis May 16, 2019

Bounce happened in DJIA when the index hit daily SMA 200. Currently, the index has moved upward for two days and might continue for the third day. However, the bounce might last for short-time as fundamental situation continue to worsen.

As long as there is no close below the averages then it is possible for DJIA to start rallying toward 26,000.

Apple Inc (AAPL)

US Stock market Technical Analysis May 16, 2019

AAPL gapped down below daily SMA 200 and attempted a rally. The rally has not surpassed the averages yet and we should see a test happen today. If the share prices rejected from the averages then AAPL might start a new bearish leg to test SMA 100. A long position at the current level with a stop below SMA 100 might be the long scenario traders could take.

Johnson & Johnson (JNJ)

US Stock market Technical Analysis May 16, 2019

JNJ is in a critical situation where the share prices might tumble and continue its bearish trend. At the current time, the share prices traded near the bottom of the channel and daily SMA 200. A strong breakout below the bottom of the channel and the SMA 100 will trigger a long-term bearish trend. A bounce from current level will help JNJ to maintain its trend inside the channel.

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