DJIA futures narrow losses after core retail sales surprise

Traders and investors continue to be served mixed data since the beginning of this month. The job data showed major miss, inflation data tame, and retail sales surprise to the upside. Core retail sales show a 1.8% increase compared to the -0.1% expectation. Retail sales also increased 0.7% compared to -0.7% expectation.

Despite the situation, traders might want to stay cautious ahead of the FOMC meeting this month.

Asian & European Stock market

The Asian stock market is mostly lower. Japan Stock market down 188.37 points (-0.62%) to 30,323.34, China stock market down 49.13 points (-1.34%) to 3,607.09, and Australia ASX 200 up 43.20 points (+0.58%) to 7,460.20. The European stock market is also on the other hand trading higher. DAX Germany up 0.64%, UK FTSE up 0.37%, Euro STOXX 600 up 0.74%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA formed a bullish reaction at the daily SMA 100 and avoided breakout below it. As mentioned before, the index is expected to continue trading sideways between the daily SMA 50 & 100. We might see the index continue close between the two averages until next week’s FOMC meeting.

United Parcel Service (UPS)

UPS share prices seem trading between two horizontal lines between $188.00 – $198.00. If the share prices continue moving lower then traders will observe the reaction near the daily SMA 200. Long positions could be considered when there is a major bullish reaction.