US Stock market Technical Analysis November 15, 2017 – FX Daily Report

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Falling oil prices and fear of possible failure in the tax-reform program lead Dow Jones Industrial Averages futures down more than 100 points. The market is in risk-aversion mode and might continue to do so until tax-reform result announced.

CPI and core CPI data released in line with expectation, the data show 0.1% and 0.2% increase monthly. However, retail sales and core retail sales data mixed with retail sales come out at 0.2% vs. 0.0%, and core retail sales come out at 0.1% vs. 0.2% expectation.

As soon as the data released, U.S dollar index slide. Asian stock market thread on the negative side. Nikkei down -351.69 points (-1.57%) to 22,028.32, Shang Hai Composite down 27.01 points (-0.79%) to 3,402.54 and Australia ASX 200 down 34.51 points (-0.58%) to 5,934.23. European stock market also underwater. DAX Germany down 1.15%, FTSE UK down 0.50%, and Euro STOXX 600 down 0.89%.

Technical Analysis

Dow Jones Industrial Average (INDU)

Dow Jones Industrial Averages gapped down Yesterday, but the index manages to recover most of its losses and show buying interest stay strong. Today, the index expected to open lower. Will the index recover its losses and continue to maintain bullish trend? Alternatively, will it fall toward 23,000 to look for support?

Alcoa Corporation (AA)

AA has been in a downtrend since the share prices hit $50.00. The downward momentum is strong as it erases August – October rally in just one month. Base on the current situation, it is possible for AA to continue down to reach $40.00 and daily SMA 200. Traders could position themselves to enter long position near both levels if bearish pressure diminish.

International Business Machines (IBM)

IBM earnings gap brought the share prices above daily SMA 200. It seems bullish at first sight, but the market follows the technical path by rejection from the strong resistance. The share prices move down from the averages and currently has closed the earnings gap. Will the bull return and push the share prices up?

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