Cautious bullish sentiment before Powell’s speech

U.S stock market sharply higher yesterday as traders and investors rejoice on President Trump discharge from Walter Reed. Today, the market will focus on The Fed’s Jerome Powell speech which is expected to mention the importance of stimulus.

Meanwhile, stimulus talk will resume today after there is no deal again yesterday. Similar to the previous day analysis, if the stimulus deal is approved then we will see bullish continuation in the stock market.

Asian & European Stock market

The Asian stock market continue higher today. Japan stock market up 121.59 points (+0.52%) to 23,433.73, China stock market closed and Australia ASX 200 up 20.50 points (+0.35%) to 5,962.10. European stock market also add gain. DAX Germany up 0.79%, UK FTSE up 0.34%, and Euro Stoxx600 up 0.27%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA building bullish pressure and managed to close above 27,000. The index might continue higher today as the futures higher more than 100 points. At the current time, traders will expect the index to trade between 27,000 – 28,000. Until the election, we might see DJIA maintaining its limited bullish pressure.

Clorox Co (CLX)

CLX share prices slowly move lower between two trendlines. The share prices might target the horizontal area between $195.00 – $200.00 and the daily SMA 200. Traders could prepare to enter long positions when the share prices hit the support levels and form bullish pattern.