Worry over the second coronavirus wave drove the global market lower

Europe and the Asian stock market tumble today as coronavirus cases raise moderately in Europe. More cases in Europe lead the countries to reimpose strict health protocol which will slow the economy. DJIA futures currently lower 56 points which suggest mild bearish open.

The current situation expected will continue bearish even though there is more stimulus poured to the market. The only cure for the current problem is an effective coronavirus vaccine which might not be found until the middle of next year.

Asian & European Stock market

The Asian stock market significantly lower. Japan stock market down 258.67 points (-1.11%) to 23.087,82, China stock market down 56.53 points (-1.72%) to 3,223.18 and Australia ASX 200 down 48.00 points (-0.81%) to 5,875.90. The European stock market also on the path lower. DAX Germany down 0.13%, FTSE UK down 0.54%, Euro STOXX 600 down 0.54%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA finally broke below the 27,000 handles with strong bearish close yesterday. The index is expected to continue its bearish movement and target daily SMA 200 also the 26,000 handles. At the current time, traders might want to continue to wait and see until there is a major bullish reaction in the index.

Kroger Inc (KR)

KR share prices have reached the level near the daily SMA 200 in the previous bearish leg. The test on the level resulted in a bounce toward the bullish channel. Yesterday, the share prices printed a bearish close which shows rejection from the channel. If the bearish movement continues then we might see KR trade below the daily SMA 200 and target the $30.00 handle.

The share prices might also found support at the daily SMA 200 and form a double bottom pattern. Traders will monitor the reaction near the averages at the current time.