Brexit pause and earnings miss coloring the market red today
Brexit situation reached a deadlock and the only reasonable solution for the current situation is a delay. However, the delay might not change the major issue and we might encounter the same situation when the deadline near.
From the U.S corporate news, Caterpillar Inc (NYSE: CAT) reported earnings per share of $2.66 vs. $2.88 expectations. Revenue come the out at $12.758 billion vs. $13.572 billion. Boeing Inc (NYSE: BA) posted eps of $1.45 vs. $2.09 expectations. Both results put weight to the DJIA futures and traders could expect lower opening today.
Asian & European Stock market
The Asian stock market traded mixed. Japan’s stock market up 76.48 points (+0.34%) to 22,625.38, China stock market down 12.76 points (-0.43%) to 2,941.62, and Australia ASX 200 up 0.90 points (+0.01%) to 6,673.10. The European stock market also traded mixed. DAX Germany down 0.05%, UK FTSE up 0.27%, Euro STOXX600 down 0.27%
Technical Analysis
Dow Jones Industrial Average (INDU)
DJIA maintains the position near 27,000 handles but no bullish progress. The index is at the risk of further weakness as the futures pointed down 100 points. If the downward movement happens then 26,000 will become the target. No change to the overall outlook as we expect the index to move between 26,000 – 27,000 and between the two trendlines.
Chevron Corp (CVX)
CVX traded in a bearish trend after the share prices move below the daily SMA 200. At the current time, bullish correction is under progress and CVX will reach the SMA 200 soon. Traders could prepare for short positions near the averages. Alternatively, short positions also possible when the share prices hit the top of the channel.
Visa Inc (V)
V turned lower sharply yesterday, we have a bearish momentum candlestick which might breakout below the support shown on the chart. On the downward path, daily SMA 200 and 38.2% Fibonacci Retracement will become the target. If both support levels are broken then the trend will change into bearish and traders could expect 50% Retracement reached.