Maintain short positions. The E-mini Dow ended on a “Doji” candle last Friday. It settled at 23,517 pts after oscillating between a high and low of 23,677 pts and 23,241 pts throughout the session. Still, market sentiment remains negative, as we view last Friday’s “Doji” candle as a weak rebound after the recent losses. From a technical viewpoint, the downside swing is likely to continue, as the index did not recover above the 10-day SMA line. Overall, we expect the market to decline further if the immediate 22,704-pt support mentioned previously is taken out decisively in the coming sessions.

Source: RHB Securities Research - 18 May 2020