U.S-China back into focus, Italy dragged Europe

The renewed NAFTA deal under USMCA agreement boosted the market in the previous day and lighten the trade pressure which has pushed the equity market down. However, the market back to reality and refocus on U.S-China trade situation. In the previous day, President Trump doubling down on China by saying it was “too early” to negotiate with China.

In Europe, investors turned risk-averse as Italy’s budget planned a wider deficit. Banking sector leads the market downside.

Asian & European Stock market

Asian stock market mostly lower. Nikkei up 24.86 points (+0.10%) to 24,270.62, China stock market closed on holiday, and Australia ASX 200 down 46.10 points (-0.75%) to 6,126.20. European stock market follows suit. DAX Germany down 0.85%, UK FTSE down 0.56%, Euro STOXX600 down 0.79%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA launched above 26,500 and progress higher in the previous day but at the end of the day, the index relinquishes part of the gain to settle below the all-time high. Today, the index futures pointed lower before market open and indicate significant lower opening as trade fears back to cloud the market. If the index starts moving lower then we expect it will reach the bottom of the channel as initially planned.

Gamestop Corp (GME)

GME manage to climb above the daily SMA 200 and maintain the position above it. Although the situation looks bullish, we could see the share prices traded inside a triangle pattern. The share prices might find support at daily SMA 200 but it needs to break upside the triangle to confirm the change of trend.

Wendy’s Company (WEN)

WEN daily chart proved the SMA 200 is strong enough to stop bearish pressure and reverse it. Currently, the share prices are testing the daily SMA 200. Traders could expect another bounce from the averages and place long position. Wait until the daily candlestick formed a bullish pattern before placing any position.