US Stock market Technical Analysis May 12, 2017 – FX Daily Report

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The stock market is digesting data from retail sales and inflation today. Retails sales increase but less than expected and sign continuation of retail doom and gloom though it is softer. The inflation data show softer than expected result which could decrease the odds of interest-rate increase next month. Overall, the market is optimistic and this data less significant to deter The Fed overall plan.

The more significant news come from President Trump tweet to ex-FBI chief whom he fired. The President warn against leaking important data. There is growing protest, asking for President Trump impeachment. This event could lead to major disruption to the market.

Asian stock market recorded losses for Nikkei and Australia ASX 200, but let Shanghai Composite closed at the positive side. European stock market boosted and looked to close the day in green.

Technical Analysis

Dow Jones Industrial Averages (INDU)

Dow Jones Industrial Averages closed as bullish pin bar yesterday after it tests both daily SMA 50 and the support 20,800. Today, the price opened lower after softer inflation data and might continue lower following ongoing the protest against President Trump dismissal of FBI chief.

Intel Corp (INTC)

INTC is currently testing its lower part of the channel, and it looks like the price moving lower below the channel. There is still a chance for the share price to closed back inside the channel. Otherwise, it will continue moving lower. The close below channel is a close below daily SMA 200 too which is extremely bearish.

Other Watchlist

UNP – possible bounce from $110 support, if the price continues lower, there are daily SMA 50 & 100 which is a good place to look for a long position.

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