More trade tension, Brexit talk collapse to held the market under check
Recent attempt to recover from the fallout of trade talks between the U.S – China will fail as the market ready to open the day lower today. Tension continues building between U.S and China after President Trump signed an executive order to ban the use of products supplied by Huawei.
On Brexit, Theresa May fail to reach deal with opposition labor party. UK situation has not improved yet and it seems the prospect to solve current deadlock remain low.
Asian & European Stock market
Asian stock market mixed with China dropping today. Japan’s Nikkei up 187.11 points (+0.89%) to 21,250.09, China stock market down 73.41 (-2.48%) to 2,882.30, and Australia ASX 200 up 37.50 points (+0.59%) to 6,365.30. European stock market drifted lower. DAX Germany down 1.21%, UK FTSE down 0.58%, Euro STOXX600 down 0.90%.
Technical Analysis
Dow Jones Industrial Average (INDU)
DJIA bullish close will come under challenge today as the index futures pointed down more than 200 points before the market open. It seems the index might settle near the previous day low or the daily SMA 200 by the end of the day. Pressure building from the fundamental side and the only reason to stay bullish in the index is no close below SMA 200 yet.
As long as the index could maintain the position above SMA 200 then traders could continue to stay bullish.
Electronic Arts (EA)
The share prices consolidate between two trendlines and currently attempting to break out above it & SMA 200. If the breakout happens then EA trend will turn into bullish and traders could expect the bullish run. $100.00 will become the major resistance to break when the share prices manage to climb above SMA 200.
Stanley Black & Decker Inc (SWK)
A bounce from the daily SMA 200 is under progress and we have initial reaction yesterday. Currently, SWK limited below the daily SMA 50 and need a close above it. Will it breakout above the averages or reverse and close below the SMA 200 to continue its bearish trend?