Stock market ready to open lower as trade deal between U.S-China under question
Uncertainty return to the market after President Trump signed the bill which favors Hong Kong, pro-democracy protesters. The act invites uncertainty to the market and dim the prospect of a trade deal between the U.S and China. At the current time, DJIA futures down 70 points.
Even though the outlook turn negative, there is no reason to short the equity market yet. DJIA might be able to continue its bullish trend and strike more fresh all-time high.
Asian & European Stock market
The Asian stock market mostly lower after Trump sign bills backing Hong Kong protests. Japan’s stock market down 28.63 points (-0.12%) to 23,409.14, China stock market down 13.50 points (-0.47%) to 2,889.69, and Australia ASX 200 up 13.40 points (+0.20%) to 6,864.00. The European stock market also under pressure. DAX Germany down 0.35%, UK FTSE down 0.30%, Euro STOXX600 down 0.18%
Dow Jones Industrial Average (INDU)
More fresh all-time high printed on the DJIA daily chart. Similar to the previous day analysis, it is better to sit with long positions in equity for now. If a pullback happen then traders could prepare when DJIA hit a level near 27,000 or the trendline.
Hasbro Inc (HAS)
HAS upward movement finally reached the daily SMA 200 and ready to test it. If the share prices could continue further upward then the horizontal line present on the chart will become the obstacle to remove. Successful close above the line will trigger more bullish reaction which could lead HAS to close the previous earnings gap.
Starbucks Corp (SBUX)
SBUX is interesting to watch as the share prices maintain the position above daily SMA 200. A bounce happened recently and SBUX moe above the bearish trendline. It is possible the share prices ready to continue its bullish trend. Traders could prepare to enter long positions when the share prices pullback toward the daily SMA 200.