Stock futures slightly lower after record high

DJIA futures are currently lower by 93 points which indicates a lower opening. The index is on track higher after the previous day’s new record high. However, the global stock market seems pulling back as China’s Evergrande deal to sell 50.1% of stake in property business has fallen through. The company also provides information that it might not able to meet if financial obligation.

Despite the situation, traders will continue focusing on the series of earnings releases this week to gauge the recovery sentiment.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index printed a new record high and is set to continue its bullish movement. The index bullish trend is continuing and there is no reason for traders to become bearish. Under the current situation, traders will continue to hold long positions in stock and wait for a retracement to add more long positions.

Taiwan Semiconductors (TSM)

Chip crises have been the major concern of the market which might extend to next year. TSM share prices are under pressure as a result of the event. The share prices are broken below the daily SMA 200 but are supported by a horizontal line. We might see TSM share prices trading inside the area shown on the chart while waiting for the chip crises to subside.