A pause before further bearish pressure?

U.S stock market managed to stage a bounce yesterday after a three consecutives bearish close. The event happened after Nasdaq 10% decline. Traders and investors currently assessing whether the current bounce will develop into another bullish leg or reverse and continue the bearish movement again.

ECB will hold a meeting today to decide interest-rate and future policies. Traders and investors will closely monitor the progress of the meeting.

Asian & European Stock market

The Asian stock market mixed today. Japan stock market up 202.93 points (+0.88%) to 23,235.47, China stock market down 19.80 points (-0.61%) to 3,234.82 and Australia ASX 200 up 29.90 points (+0.51%) to 5,908.50. The European stock market mostly lower. DAX Germany down 0.03%, FTSE UK up 0.94%, Euro STOXX 600 down 0.45%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA made a bullish attempt to return inside 28,000 – 29,000 range. The index initially could climb above the 28,000 level but at the end of the day, it settled at 27,940.47. Today, DJIA futures traded lower more than 100 points which indicate the continuation of the bearish movement.

If DJIA moves lower then it will target the daily SMA 50.

Autodesk Inc (ADSK)

ADSK share prices pushed lower below the $230.00 support level and almost reach the daily SMA 100. The share prices managed to return above the support level and will aim to move higher to test daily SMA 50. However, it is possible the bear will push the share prices lower and trigger a sell-off toward $210.00 also daily SMA 200.

If the share prices could reach $210.00 or the daily SMA 200 then traders could prepare to enter long positions on bullish reaction.