Market pause as Coronavirus stimulus bill continue under negotiation

The House of Democrat is drafting a $2.4 billion stimulus package to vote next week. It helped the U.S stock market to make recovery yesterday. However, the package might get a rejection from Republic leaders as it is well above what they are willing to spend.

Despite the situation, the market is pausing further bearish movement and might attempt to close the last day of the week on the positive side.

Asian & European Stock market

The Asian stock market is mixed. Japan stock market up 116.80 points (+0.51%) to 23.204,62, China stock market down 3.76 points (-0.12%) to 3,219.42 and Australia ASX 200 up 89.00 points (+1.51%) to 5,964.90. The European stock market also traded mixed. DAX Germany down 0.19%, FTSE UK up 0.15%, Euro STOXX 600 up 0.05%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA bearish movement almost reaches the daily SMA 200. The index formed a bullish close yesterday in an attempt to close the week above 27,000. Today, the index futures trade on the positive side and might indicate a further bullish attempt above 27,000.

We think the current bullish reaction is temporary action only and traders might want to observe the index further reaction near the daily SMA 200.

Alphabet Inc (GOOG)

GOOG share prices are in a bearish correction where the share prices have move lower 17.5% from the top. At the current time, the share prices are supported by the daily SMA 200. No lower low printed on the chart which means the bullish trend still intact.

If the share prices continue lower below the daily SMA 200 and $1,347 low then traders will expect the trend to change from bullish to bearish.