Bearish cue before the open of the market

The stock market is set to weaken today after the previous day rate-cut by the Fed. The rate-cut expected to lift the market and it performed as expected yesterday. However, the weak data from China put pessimism on the market. Aside from the weak data, there is a doubt that China and U.S will reach a long-term deal on the trade war issue.

DJIA futures currently down 84 points before the market opens and might slip lower.

Asian & European Stock market

The Asian stock market mixed on interest-rate cut and China weak data. Japan’s stock market up 83.92 points (+0.37%) to 22,927.04, China stock market down 10.26 points (-0.35%) to 2,929.06, and Australia ASX 200 down 26.10 points (-0.39%) to 6,663.40. The European stock market lower after the implementation of tariffs. DAX Germany down 0.24%, UK FTSE down 1.00%, Euro STOXX600 down 0.33%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA continues further upward in the previous trading day. There is no breakout above the trendline yet which mean the index will make more test on the trendline. Negative numbers on the DJIA futures give traders little hope that a breakout will happen by the end of this week.

If the correction started then we could expect DJIA to target 26,000 and the lower trendline.

Waste Management (WM)

WM could be an interesting stock to watch. The share prices have shifted from its long-term bullish trend inside the channel into the bearish channel. At the current time, WM is traded near the bottom of the channel and the daily SMA 200. We might see a bounce from the support levels and the attempt toward the top of the channel.

WM expected to continue its movement inside the bearish channel for now