U.S futures higher but might reverse

The U.S stock market might be set for a bullish correction today after the bearish continuation below 28,000. However, it could be a temporary bullish sentiment before further downside. Traders and investors might not put much hope on the current bullish sentiment as the correction is imminent after bullish rally from the March bottom.

If the bearish correction continues then DJIA could fall to 27,000 or 26,000. Meanwhile, traders are focusing on the Brexit standoff between UK-EU after PM Boris Johnson proposed an internal market bill that will disregard the rules regarding the movement of goods.

Asian & European Stock market

The Asian stock market mostly higher today. Japan stock market up 171.02 points (+0.74%) to 23,406.49, China stock market up 25.52 points (+0.79%) to 3,260.35 and Australia ASX 200 down 49.10 points (-0.83%) to 5,859.40. The European stock market mixed as Brexit under focus. DAX Germany down 0.15%, FTSE UK up 0.31%, Euro STOXX 600 up 0.02%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA made another bearish close after the test on 28,000 handles. The index might continue moving lower and target the daily SMA 50 also 27,000. However, DJIA futures currently higher more than 200 points which indicate bullish movement.

Baidu Inc (BIDU)

BIDU share prices are at a crossroads. Each time the share prices pushed lower, it managed to bounce from the daily SMA 200. However, the bounce could not continue into a strong bullish rally. This is the third time the share prices tested the SMA 200. If the bull could continue to maintain the positions above the averages then traders will expect a bullish rally in the coming days or weeks.