U.S stock market retreated after record high

The stock market rallied to a new high after government shutdown ended. However, the bear storming the front and bring the major indices lower. Traders keep rotating out of technology sectors which make a sharp downturn. At the current time, the instrument which gained significantly is the precious metals. Despite the re-opening of government, uncertainties continue to stay at high level as traders waiting for the release of economics data. Moreover, the change of tone in the Fed might cause the market to shy away from risk-on assets for now.

We think a bearish correction could happen again and traders could use it as a chance to add long positions.

Dow Jones Industrial Average (INDU)

DJIA index has reached new record high and looks will start a pullback as it trade lower today. The trend stay bullish and 49,341 also 50,000 are the targets to watch. On the lower side, the 47,000 level is the key support level to watch when the bearish correction happens. As the index continue printing new higher swing high and higher swing low, it is better to stay bullish.

Sea Limited (SE)

SE share prices broke and close below the daily SMA 200 the first time. In the past, it always bounce from the level and continue the bullish trend. Under current situation, traders will prepare for the bearish continuation. If there is bullish correction in the share prices, traders could wait near the daily SMA 200 for bearish reactions. On the lower side, $131.03 and $112.46 will become the bearish target to watch.