U.S stock market continue sideways

There is bearish pressure on the U.S. stock market today. However, we could say the situation mostly sideways as the index stay inside the three days range. It seems the market is undecided on the next direction. Today, President Trump said China violated its preliminary trade agreement, which spark fear of tariff war continuation. If the stock market start moving lower, it will conclude the current stall situation.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index mostly sideways near the daily SMA 200. The situation is mixed from fundamental side, but technically we are near resistance level and waiting for reactions. If the index bounce lower, then traders will observe the reactions near 40,000 level. On the upside, a breakout and close above daily SMA 200 with strong bullish momentum will confirm a bullish continuation.

Dupont de Nemours (DD)

DD share prices reached the daily SMA 100 and show bearish reaction. The share prices now trading lower and not far from the 38.2% – 50% Fibonacci Retracement levels. Traders will observe the share prices reactions near the area. If there is no bounce reactions, then the bearish trend will continue as we are below the daily SMA 100 & 200. On the other hand, if the share prices stabilize and bounce upward with strong momentum, then there is chance of retest on the daily SMA 100 & 200.