Market up on possible Italy yield over budget
Italy budget deficit drag Asian market today but the situation changed when the European market open. There is news that the initially planned 2.4% budget deficit for 2018, 2.2% for 2019 and 2.0% for 2020 will be revised to meet EU’s budget rules.
The situation turned positive and currently DJIA futures up more than 30 points. We expect higher opening and possible fresh high in the index. On the economic ground, traders will watch ISM Non-Manufacturing PMI with 58.0 gauge forecast. The Fed Jerome Powell also scheduled to give a speech later.
Asian & European Stock market
Asian stock market lower for another day. Nikkei down 159.66 points (-0.66%) to 24,110.96, China stock market stay closed on holiday, and Australia ASX 200 up 19.90 points (+0.32%) to 6,146.10. European stock market flat. DAX Germany unchanged, UK FTSE up 0.07%, Euro STOXX600 up 0.12%.
Technical Analysis
Dow Jones Industrial Average (INDU)
New record high printed in Dow Jones Industrial Averages and more to come in coming days. We maintain the bullish outlook in the index and suggest to avoid shorting at the current time. Buying when correction happens is preferred.
Delta Air Lines (DAL)
DAL share prices tumbled and reach the daily SMA 200 also SMA 100. There is a support area also between $54.00 – $55.00. If the bull could stop the selling and maintain the share prices above SMA 200 then it is possible for DAL to bounce.
Realpage Inc (RP)
RP is a good candidate for a long position as the share prices reach a flip level and the daily SMA 50. However, the selling momentum is strong and no bullish candlestick yet. If the selling continues then RP might continue lower toward the daily SMA 200. At the current time, traders will watch price action near the support.
Workday Inc (WDAY)
WDAY formed a triangle consolidation and reaching the end of consolidation. A breakout could happen either way upside or downside. The overall trend of WDAY is bullish which suggest trader to stick to the long side.