U.S stock futures slightly higher after previous day drop

The stock market set to open higher as DJIA futures pointed upward 95 points. Yesterday, the U.S stock market made a pullback after four days bullish streak. The pullback happened as Eli Lilly said that it would pause its coronavirus antibody treatment. Aside from that, Johnson & Johnson also reported that it would halt vaccine trial after “Adverse effect”. No details disclosed yet.

Despite the bad news, the market seems optimistic on the situation. Hope on stimulus bill continue boost the stock market for now. However, if there is no stimulus bill approved and the coronavirus situation worsens then we might see major bearish reversal in the stock market.

Asian & European Stock market

The Asian stock market is mixed today. Japan stock market up 24.95 points (+0.11%) to 23,626.73, China stock market down 18.97 points (-0.56%) to 3,340.78 and Australia ASX 200 down 16.50 points (-0.27%) to 6,179.20. The European stock market slightly higher. DAX Germany up 0.28%, UK FTSE up 0.59%, and Euro Stoxx600 up 0.28%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA has reached the 29,000 resistance level and showed a little bearish reaction. Yesterday, the index closed lower after a bullish streak from 28,000 to 29,000. At the current time, the index futures are up 95 points and might indicate a resistance test again today.

Traders will maintain cautious bullish approach nearing the U.S election.

Merck & Co (MRK)

MRK share prices are located at an interesting place where there is a daily SMA 200 and bullish trendline present. If the share prices could continue to maintain its position near both support levels then MRK might bounce and start moving higher to target the top trendline.

Traders who enter long positions could place stop below the previous swing low around $75.00 – 76.00