Stock futures are slightly under pressure as the debt ceiling negotiations continue

U.S stock market has been trading sideways for several days. Trades and investors are focusing on debt-ceiling negotiation. Despite the situation, we think the policy maker will raise the debt ceiling to avoid the negative effect on the economy that could trigger a deep recession. Traders will wait for further development, each bearish movement in the market right now could become a chance to enter long positions at a lower level.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index situation is sideway for three days as the index traded near the daily SMA 200. At the current time, the index might continue consolidation between the daily SMA 200 and the trendline. Traders will continue waiting for the index to make a breakout and close outside of the range to confirm the next direction. We still favor a bullish breakout in the second half but prepare for further weakness and a chance to enter long positions at a lower level.

Jabil Inc (JBL)

JBL share prices look bottoming near the daily SMA 100 and currently trading between the SMA 50 & 100. If the share prices continue moving lower then it will target the daily SMA 200. A touch on the daily SMA 200 will print a new lower low. If the share prices print a lower high next then the trend might turn bearish again for the long term.