The resurgence of new coronavirus cases to put the market under a cautious tone
The U.S stock market put under pressure yesterday as new coronavirus cases continue to increase across the U.S states. Stricter measures adopted should weigh down on the economy. Even though the Pfizer vaccine announced 90% effective against coronavirus without major side-effects, we might not see the vaccine distributed until December.
Despite the situation, DJIA futures currently trading higher more than 200 points which indicates a strong weekly close. Traders might want to be careful and observe the DJIA index near 30,000 for now.
Asian & European Stock market
The Asian stock market ended lower today after this week’s rally. Japan stock market down 135.01 points (-0.53%) to 25,385.87, China stock market down 28.57 points (-0.86%) to 3,310.10 and Australia ASX 200 down 13.00 points (-0.20%) to 6,405.20. The European stock market slightly higher. DAX Germany up 0.29%, UK FTSE down 0.23%, and Euro Stoxx600 up 0.07%.
Dow Jones Industrial Average (INDU)
DJIA index maintains the position between 29,000 – 30,000 and might attempt to move higher again today. The DJIA futures currently higher more than 200 points. If the bull could continue to maintain the bullish pressure in equity then DJIA expected to breakout above 30,000 soon.
Seagate Technology (STX)
STX share prices have returned above the daily SMA 200 and launched higher after the bearish retest. The share prices seem to make a bearish correction after reached the horizontal level around $55.00. If the share prices move lower then traders could use the daily SMA 50 and 200 as support levels to enter long positions.