European futures trade lower; stock market breadth confirms weakness

Global Stock Market Today

The global stock market fluctuated between gains and losses and recorded another mixed session today. Stocks in China rose, the Shanghai index advanced 0.27%. The Australian stock index, the ASX index jumped higher by 0.88% while the HSI stock index declined 0.16%, and the Korean Kospi stock fell by 2.11%.

Dow Index And SP500 Index: Market Breadth

The U.S. stock market's breadth shows early signs of fatigue as the bulls lost some ground. 57% of the Dow Jones stocks traded above their 200-day moving average on Friday.

The S&P 500 stocks also witnessed a lack of upward momentum for the coronavirus stock market rally. 58% of the shares traded above their 200-day moving average on Friday.

Dow Jones And SP 500 Futures Today

The Dow Jones futures are trading lower by 15 points; the U.S.-China tensions remain the major focal point among investors. Investors are also waiting for the second stimulus package; lack of progress is keeping traders on the sidelines.

The Dow Jones futures are trading within the highs and lows of last week on a weekly time frame. Having said, the price of the Dow Jones is trading more closer to highs of last week, and this is keeping the door open for the Dow to continue its upward journey. The Dow's price action is still solid as the index is trading above all the critical moving averages: 50, 100, and 200-week simple moving averages.

The S&P 500 index, the broader representation of the U.S. stock market, has not been able to reach its record high so far. Investors are waiting for the index to reach this milestone, but it appears that traders are not ready for the index to push to level. The price action for the S&P 500 does look somewhat bullish as S&P 500 is forming a high low—mostly—on a daily frame and as long as the price doesn't violate this pattern, we have a hope for the price to continue move higher. The S&P 500 index is also trading above the 50, 100, and 200-day SMA on a daily time frame. This is another positive sign for the bull rally, and if there is any pullback, the 50-day moving average is likely to act as first support.

Stock Market Rally

The S&P 500 index recorded another positive day yesterday; the S&P 500 stock index soared 0.27%. Consumer discretionary sector led the gains for the S&P 500 stocks, and seven out of eleven sectors closed higher. L Brands contributed the most gains, rose 8.52%. American Air was the biggest drag; it declined by 5.33%. The S&P 500 stock index is 0.34% below its 52 weeks high.

The Dow index declined 86 points yesterday, and the Dow stocks pushed the index lower by 0.31%. Nineteen stocks of the Dow Jones Index declined, and 11 shares of the Dow index moved higher. Home Depot stock jumped higher by 2.74% and was the biggest mover for the Dow while Boeing stock declined 3.41%, the biggest drag for Dow Jones industrial average index.

The NASDAQ composite, a tech-savvy index, rose 1.11% yesterday.