Market setback on possible U.S-China “no deal”

The stock market futures pullback today as the hope U.S and China will strike a deal on trade is fading. The pullback also happens before U.S job data which figures will give clue for September The Fed rate decision. The current expectation, The Fed will increase rate 25 bps in September and another 25 bps in December.

Aside from U.S-China and allies, on Thursday, President Trump hinted the market that he sets his eye on Japan. This commentary drives Japan stock market down and sent Yen higher against U.S dollar.

Asian & European Stock market

Asian stock market mostly lower. Nikkei closed down 180.88 points (-0.80%) to 22,307.06, Shang Hai Composite closed up 10.71 points (+0.40%) to 2,702.30 and Australia ASX 200 down 16.60 points (-0.27%) to 6,143.80. European stock market also backtracks. DAX Germany down 0.29%, FTSE UK down 0.95%, and Euro STOXX 600 down 0.31%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index crawled upside and currently challenging 26,000 handles. The futures threading at the negative side and suggesting weak open. We expect the index will close below 26,000 handles this week. However, the release of job data might influence the index movement and it will soon be released.

Activision Blizzard (ATVI)

ATVI trend line and daily SMA 200 has proven itself as strong supports level to break. The share prices bounced from both support level and headed to daily SMA 50 as shown in previous month analysis. Currently, the shares back to SMA 200 and almost touch the trendline. Will we see another bounce and start of the new bullish leg from this level?

American Express Co (AXP)

A flip level is a level where resistance turned support or vice versa. The level is a strong level and mostly used as reference area to take a high-odds position. $100 – $102 is expected flip level which will support AXP share prices when retest happen. Traders could place long position near the flip level with stop level below the daily SMA 200.