Stock futures slightly higher after progress in debt-ceiling negotiations

DJIA futures are up 50 points before the market opens as there is positive progress in debt-ceiling negotiations. We might see the end of debt-ceiling drama and focus on the Fed again. Based on the gauge, the market now sees the Fed will raise the interest rate by 25 bps next month. We might see mix reactions in the market but traders will continue to use each bearish correction as a chance to add more long positions.

Technical Analysis

Dow Jones Industrial Average (INDU)

A bounce from daily SMA 200 happened last week which is a text-book bounce. No change to the situation of the index which consolidates between the daily SMA 200 and the trendline. Traders will continue waiting for the index to make a movement outside of the range to confirm the next direction. As mentioned before, the close outside of the daily SMA 200 and the trendline range will confirm the index’s next direction.

Analog Devices Inc (ADI)

ADI share prices gapped down after the earnings release and reached the daily SMA 200. The bullish bounce might develop into a new bullish leg. However, traders will wait for the price to stabilize before deciding on the next direction. If the daily SMA 200 hold out against the bearish pressure then traders could enter long positions near it.