Stock futures pointed up, ECB under the spotlight

The global market decline took hold yesterday as weak earnings and weak economic data send the chill to the market. It might be the welcoming of Halloween by the market. Today, the selling continues in the Asian market but reversed in the European session.

Traders and investors refocus their attention to ECB rate decision today. After the rate decision, there will be a press conference from Mario Draghi. Will the central bank proceed with hawkish comment and start rising interest-rate? We will monitor closely what the central bank will do.

Asian & European Stock market

Asian stock market nose dived today. Nikkei down 822.45 points (-3.72%) to 21,268.73, China stock market up 0.50 points (+0.02%) to 2,603.80, and Australia ASX 200 down 164.90 points (-2.83%) to 5,664.10. European stock market taking different route upside. DAX Germany up 0.38%, UK FTSE up 0.08%, Euro STOXX600 up 0.29%.

Technical Analysis

Dow Jones Industrial Average (INDU)

Major breakout below daily SMA 200 leaves us with a possible change in long-term trend. DJIA closed significantly lower below the SMA 200 and might no able to recover above it. Global market slump on trade war issue has taken a toll on the index and we might not see an end to it soon. If the index moves up then it will test the SMA 200. If it moves down then we expect it will reach 23,900 – 24,000 area.

Other Watchlists

HES – The share prices closed below daily SMA 200 after continuous bearish movement from $74.81 high at the beginning of the month. It is traded at $58.16 currently, traders will wait for a strong bullish reversal pattern at the daily SMA 200.

AMZN – We have a close at daily SMA 200. Similar to HES, a strong bullish reversal pattern from the SMA 200 might trigger bounce and continuation of a bullish trend.