The market down on trade issue

The stock market in the U.S set to open lower after President Trump told in a conference that he is not happy with U.S-China trade deals progress. Also, the President plan measures to cut Aluminium and steel imports from Europe by 10%. The market will focus on President Trump “additional tax cut” proposal which planned around November.

Asian & European Stock market

Asian stock market moves South and stays lower as the market closed. Nikkei closed down 270.60 points (-1.18%) to 22,689.74, Shang Hai Composite closed down 45.11 points (-1.40%) to 3,169.24 and Australia ASX 200 down 9.40 points (-0.16%) to 6,032.50. European stock also traded in a lackluster performance. DAX Germany down 1.67%, FTSE UK down 0.69%, and Euro STOXX 600 down 1.08%.

Technical Analysis

Dow Jones Industrial Average (INDU)

The index turned lower in the previous day and ready to open lower as DJIA futures down triple-digit before market open. We expect the index will move down to red trendline and looking for support. As long as the index stays above the trendline, there is hope the bull could resume the uptrend.

Eaton Corp (ETN)

ETN broke loose above the first trendline and headed to daily SMA 100 & higher trendline. The share prices formed bearish candlestick in the previous day and indicated initial rejection. If the bear could push the share prices down below SMA 200, then the bearish trend might resume.

Mcdonalds Corp (MCD)

LLL is the target of short position after two retests of SMA 200. There is no major close above the averages yet and indicate the bear still in control. $190.00 will become the key for the bear to resume the bearish trend. Share prices need to close below it first. On the other hand, significant close above SMA 200 will trigger more buying.