Stock futures slightly higher after previous day drop
DJIA futures are higher 83 points at the current time. Traders and investors might take a breather after a nearly 300 points drop in the DJIA index yesterday. Yesterday, the market initially show a bullish reaction after inflation data show a softer number than expected. However, it seems the bearish sentiment set in as traders and investors stay cautious ahead of the next FOMC meeting.
The Fed expected to start tapering in the next meeting, however, mixed result in recent data is putting question whether the Fed will proceed with tapering or delay it.
Asian & European Stock market
The Asian stock market is mostly lower. Japan Stock market down 158.39 points (-0.52%) to 30,511.71, China stock market down 6.38 points (-0.17%) to 3,662.60, and Australia ASX 200 down 20.30 points (-0.27%) to 7,417.00. The European stock market is also slightly lower. DAX Germany down 0.02%, UK FTSE up 0.18%, Euro STOXX 600 down 0.15%
Dow Jones Industrial Average (INDU)
The bullish pressure at the beginning of the previous day seems to end in a bearish close. No change to the ranging outlook yet between the daily SMA 50 & 100. However, we might see further pressure on the index nearing next week’s FOMC meeting.
If the index breakout is lower then traders will prepare for a correction toward the daily SMA 200.
Eli Lilly and Company (LLY)
LLY share prices undergo a bearish correction from the top and currently trading near the daily SMA 100. We might see a temporary bounce from the averages and a bearish continuation after the bounce. Traders will observe the level near the daily SMA 200 and $215.00 for a possible bullish reversal.