Worry over new coronavirus cases to shadow the market

UK Boris Johnson placed new COVID restriction as the country was at a “perilous turning point”. Under the new restrictions, bars, and restaurants were ordered to close between 10 PM – 5 AM. The news put the market under the bearish sentiment, moreover the U.S the stimulus deals further delayed as congress could not reach an agreement.

Currently, DJIA futures lower 70 points which indicates a lower opening.

Asian & European Stock market

The Asian stock market mostly lower today. Japan stock market closed, China stock market down 42.63 points (-1.29%) to 3,274.30 and Australia ASX 200 down 38.50 points (-0.66%) to 5,784.10. The European stock market on the other hand move higher. DAX Germany up 0.75%, FTSE UK up 0.41%, Euro STOXX 600 up 0.42%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index pushed lower below the daily SMA 50 yesterday. The index supported near the 27,000 support level and closed above it. However, the index might continue its bearish movement today and target the daily SMA 200. Traders might want to let the bearish correction continue and wait until there is a major bullish reaction from support levels.

Ebay Inc (EBAY)

EBAY share prices are in a bearish correction from the top. The share prices fell from $61.06 high and currently trading at $50.14. If the share prices move higher then the level around $51.00 will become the resistance to watch. The further bearish movement could lead the share prices down to reach daily SMA 200.

Traders could use the averages to enter long positions when there is a bullish reaction.