The global market extends its bearish movement following the drop of U.S stock indices. Asian stock market and European stock market moving in agreement and it looks like nothing to reverse the sentiment yet. Reuters write there are at least 18 undisclosed contacts between President Trump campaign team and Russia during 2016 presidential race. If it is true that there is collusion between the President and Russia, then we are not far from impeachment scenario, though it is still far away.
The market will observe unemployment claims data today and speech by Treasury Sec Mnuchin. After both event, at 10.00 PM ECB President Draghi will take the spotlight. Expect little change from all of the news as the market concentrate on Trump cases.
Dow Jones Industrial Averages (INDU)
The weakness of Dow Jones Industrial Averages linger and should bring the index further down. There is support at 20,400 and daily SMA 100 which might not hold as the hot Trump issue grow hotter each day. If the index break below 20,400 it will test the psychological number 20,000.
Normally we will think about a bounce from the trend line on FB daily chart. However, under current situation where political issue overwhelms the market, it looks like the bear will easily push the price lower below the trendline. Traders could wait near the daily SMA 100 and observe if the price could bounce from it.
Kimberley Clark (KMB)
The price finally reaches the top of the bearish channel and set for a test lower. Under current sentiment, it looks like the price will bounce lower and test the daily SMA 100 & 200. However, if the price could break higher from the bearish channel, it will cancel the bearish pressure and start moving up.
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