The market trade bearishly as the Fed Chair Powell under focus

Doubt toward the U.S-China trade negotiation shadowed the market today. In the previous day speech, President Trump called China as “Cheater” but blamed previous U.S administration. The market interpreted this event as a threat to trade negotiations between U.S-China.

At the current time, the stock futures move lower. Traders and investors are waiting for Jerome Powell’s speech today. The further dovish tone in the speech is a bullish confirmation for the stock market.

Asian & European Stock market

The Asian stock market slumped on U.S-China trade uncertainties and Hong Kong civil unrest. Japan’s stock market down 200.14 points (-0.85%) to 23,319.87, China stock market down 9.58 points (-0.33%) to 2,905.24, and Australia ASX 200 down 54.60 points (-0.81%) to 6,698.40. The European stock market also under pressure. DAX Germany down 0.75%, UK FTSE down 0.42%, Euro STOXX600 down 0.52%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA set to open lower today as the index futures pointed lower more than 100 points before the market open. The bearish pressure surfaced after President Trump called China as “cheater” in his previous day speech. Expect more uncertainties in the trade war situation between the U.S and China which could drive the stock market lower.

Technically, DJIA has the potential to continue its fresh all-time high trend.

Ralph Lauren Corp (RL)

RL gapped up above the daily SMA 200 and maintain the position above it. If RL could continue to maintain the position above daily SMA 200 and the trendline shown on the chart then it has the opportunity to continue bullish. Traders could enter long positions near the SMA 200 with a tight stop below it.