US Stock market Technical Analysis May 18, 2018

Cautious approach on U.S-China Trade talk

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Today sentiment turns cautious as the market watch trade talk between U.S-China. Aside from that bond yield also rattle the stock market and bring it down. Earlier today, China foreign ministry spokesperson denied a claim to reduce trade surplus with the U.S by $200 billion. Another source said another variety of offers being made by either party.

Overall, U.S stock indices set to close the week higher despite the fear lingering in the market.

Asian & European Stock market

Asian stock market closed mostly higher today. Nikkei closed up 91.99 points (+0.40%) to 22,930.36, Shang Hai Composite closed up 38.76 points (+1.23%) to 3,193.05 and Australia ASX 200 down 6.90 points (-0.11%) to 6,087.40. European stock market takes a path downward under renewed concern on U.S-China trade deal. DAX Germany down 0.27%, FTSE UK down 0.28%, and Euro STOXX 600 down 0.26%.

Technical Analysis

Dow Jones Industrial Average (INDU)

Dow Jones Industrial Averages traded near the daily SMA 100 and stick below it, waiting for a reaction. There is no conclusion yet where the index will move next. Today, the index futures also flat before market open and might open with no direction.

A weekly close above the daily SMA 100 is bullish, on the other hand, sharp bearish candlestick from the current level and close the week below 24,500 is a bearish continuation sign.

Eaton Corp (ETN)

ETN upward correction is under test near the daily SMA 200 and the bearish trendline. The share prices have not printed any bearish candlestick, and there is no bearish reaction from the averages. Will we see upside breakout or bearish rejection?

Mcdonalds Corp (MCD)

MCD projected to move between the white trendline and the red trendline. Currently, the share prices drifted lower and looked for support. Traders could look for long position when the trendline tested. A tight stop order below the trendline is suggested.

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