DJIA futures lower nearly 400 points as Omicron variant spread

Traders and investors turned risk-averse since the new covid variant of concern announcement. DJIA futures are lower by nearly 400 points which indicates a bearish opening today. The share prices might continue lower for now as measures against the spread of new variants are being applied.

Traders will wait for good news from the vaccine side. The performance of the stock market will depend on how quick the containment is and how fast the vaccine is made to counter the new variant.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index might trade lower in today’s trading session as the DJIA futures are currently lower nearly 400 points. On the lower side, there is daily SMA 200 as a bearish target. We might see some reaction near the support level. If a bounce happens and is followed by a close above daily SMA 50&100 then the bullish trend could continue.

Schlumberger Limited (SLB)

SLB share prices made a bearish correction and reached the daily SMA 200. The share prices trade below the averages and reach the trendline. There was a bullish reaction and currently the share prices trading near the daily SMA 200. Will SLB build more bullish pressure to continue the upward movement? Alternatively, will it resume the bearish movement below the daily SMA 200 and the trendline?