Euro uncertainties opened the market

The stock market on Monday under stress test as European leader Angela Merkel position unsafe. Discussion attempt to form a coalition government has collapsed on Sunday after FDP pulled out. The collapse of this coalition could lead to Merkel form minority government which will face many obstacles in the future. Another option which is possible is a new election which Merkel will avoid at all cost.

U.S stock market futures slightly lower as Dow Jones Industrial Averages futures down 20 points.

Asian stock market mixed on Monday. Nikkei down 135.04 points (-0.60%) to 22,261.76, Shang Hai Composite up 10.11 points (+0.30%) to 3,393.02 and Australia ASX 200 down 11.58 points (-0.19%) to 5,945.67. European stock market also mixed. DAX Germany up 0.14%, FTSE UK down 0.03%, and Euro STOXX 600 up 0.25%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA upward trend has not broken yet, and the index stays at high. Today, the index might drop because of the situation in Europe. But, the downward movement might not last long. Traders could observe the index movement near 23,200.

Eaton Corp PLC (ETN)

IP bullish trend was under threat previously when the share prices tumbled below daily SMA 200. The share prices moved back above the averages and printed fresh yearly high. Currently, the share prices down near its SMA 200 and testing the support level. Traders could place long position near the support level and add more position when the share prices bounced.

International Paper Co (IP)

A simple setup on IP daily chart. The share prices fell after tested its resistance. The share prices currently sit near its SMA 200. If the trend continues, traders will find the share prices bounce from the averages.