Inflation fear intensified, tech stock to continue the bearish movement

Today, the stock market is set to trade lower as the technology sector is set to weigh on the market. Bitcoin which previously reach a new all-time high tanked nearly 20% today below 40,000. Traders and investors seem to prepare for the release of FOMC minutes of the meeting which is expected to sound dovish.

If there is a sign of tapering then we might see further weakness in the stock market.

Asian & European Stock market

The Asian stock market mostly lower. Japan Stock market down 362.39 points (-1.28%) to 28,044.45, China stock market down 18.05 points (-0.51%) to 3,510.96 and Australia ASX 200 down 134.30 points (-1.90%) to 6,931.70. The European stock market also makes significant bearish movements. DAX Germany down 1.77%, UK FTSE down 1.47%, and Euro STOXX600 down 1.60%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index under bearish pressure yesterday. The index futures also lower more than 300 points which indicates further weakness today. We might see the index testing the daily SMA 50 soon. Traders will monitor the index reaction near the averages as it always bounces from it.

Nvidia Corp (NVDA)

NVDA share prices pulled back from $648.57 top and currently trading near the cluster of averages. There was a bounce from the daily SMA 200 and currently the shares prices trading near the top trendline. If the share prices could break out above the trendline then traders will expect a bullish continuation.