Low payroll, Trump tested positive for coronavirus to shadow the market

The stock market is set to open lower today as DJIA futures currently lower nearly 400 points. The bearish pressure on the U.S stock market is caused by lower non-farm employment numbers. Non-farm employment comes out at 661k vs. 900k expectation. Aside from the data, President Trump and his wife diagnosed positive for coronavirus.

Uncertainties continue to mount over election. Moreover, the fear on second wave of coronavirus cemented after the event. Under current situation, it is better to adopt risk-averse stance.

Asian & European Stock market

The Asian stock market mostly lower today. Japan stock market down 155.22 points (-0.67%) to 23,029.90, China stock market closed and Australia ASX 200 down 81.40 points (-1.39%) to 5,791.50. European stock market also on the path lower. DAX Germany down 1.14%, UK FTSE down 0.67%, and Euro Stoxx600 down 0.51%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index rejected from the 28,000 handles and made a bearish close yesterday. The index set to continue its bearish movement today as the index future lower more than 300 points. The bearish movement might trigger further weakness and target 27,000, 26,000, and the daily SMA 200.

Under the current situation, traders might want to avoid taking long positions in equity until the bearish pressure recede.

Kraft Heinz Co (KHC)

KHC share prices recently broke below the daily SMA 200 and made a bullish correction toward it. The share prices might get rejected from the average today and continue its bearish movement. If the bearish movement continues then the level between $23.50 – $26.50 might become the support levels to watch.