Stock futures show weakness on China’s covid unrest

The unrest in China over the tight restriction after rising covid cases brings the global stock market down. The U.S. stock market is also expected to open lower today as the DJIA futures are down 180 points at the current time. Traders will continue to monitor the development of the situation in China. The recession seems not far and traders might want to stay cautious.

Despite the situation, traders might prepare for the upcoming window dressing before the end of the year.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index situation becoming more bullish as the index currently trading near the previous swing high. Further upward pressure and a new higher high are printed on the chart. If the index starts moving lower again then the daily SMA 200 and area between 32,500 – 33,250 will become a support level to watch.

EBAY Inc (EBAY)

EBAY share prices have been in a bearish trend since the $81.19 high. The bearish pressure finally stopped last month and there is a bullish continuation this month. We could see the monthly moving average of 100 is protecting the share prices from further downfall. If the share prices make a bearish correction, traders could enter long positions with a stop below the latest swing low.