Dow futures tumbled 800 points on new covid variations concern

The global stock market is sharply lower today following the spread of new covid variance in Africa. WHO currently discussing whether the new B.1.1.529 variant will be regarded as a variant of interest or variant of concern. There is no major news release today and traders will prepare for a major pullback.

Today’s trading session will end earlier at 1 PM due to the holiday weekend.

Technical Analysis

Dow Jones Industrial Average (INDU)

A major bearish correction will happen today, the question is, how far the DJIA index will dump before it shows bounce reaction? On the lower side, there are daily SMA 50 & 100 also the daily SMA 200. We think the index might close the week near the daily SMA 50 & 100 and might attempt to bounce in the coming week.

Micron Technology Inc (MU)

MU share prices have broken above the daily SMA 200. It might start a bearish correction today as the global stock market retreats sharply. When a retest on the daily SMA 200 happens, traders could enter long positions on bullish reactions. If the bearish pressure managed to close below the averages then traders might want to hold entering long positions until a major bullish reaction happens.