“Wait and see” mode before earnings result and stimulus negotiation

The stock market futures mostly sideway before the market open. Traders and investors seem to wait for the corporate earnings result and resumption of stimulus negotiation. The overall direction of the index is expected to stay bullish before next month election.

Similar to the previous week, if there is stimulus deal reached then we will see further bullish pressure in the stock market.

Asian & European Stock market

The Asian stock market mostly higher today. Japan stock market down 61.00 points (-0.26%) to 23,558.69, China stock up 86.39 points (+2.64%) to 3,358.47 and Australia ASX 200 up 29.80 points (+0.49%) to 6,132.00. The European stock market also follows the path higher. DAX Germany up 0.26%, UK FTSE flat 0.00%, and Euro Stoxx600 up 0.53%.

Technical Analysis

Dow Jones Industrial Average (INDU)

The movement of DJIA index continues pointed to the upside after the previous week bullish close. The index currently trade inside 28,000 – 29,000 range and is expected to consolidate inside it. Today, the index futures trade lower but not far from the zero level.

We think the index will have limited upside as stimulus deal negotiation continue.

Capri Holdings LTD (CPRI)

CPRI share prices climbed above the daily SMA 200 and set to target the horizontal level at $23.50. Traders could continue to assume the share prices will continue its bullish trend. When the share prices start to move lower and reach the bottom trendline then traders could enter long positions near it. On the other hand, daily SMA 200 also could be used as level to enter long positions.