U.S stock futures flat before ADP job data

The stock market is taking a bearish turn ahead of U.S. job data this week. Today, the market will observe the release of ADP job data. If the number shows further weakening then it might confirm that Friday job data will show a decreasing trend. Traders will wait until bearish pressure recedes and there are bullish reactions to add more long positions in stocks. It is September which is known as “Rektember” so traders could be more patient before jumping on long positions.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index is slightly lower after the latest record high. The index might resume the bearish correction toward the 40,000 handle and the daily SMA 200. It also might trade sideways near the record high while waiting for this month’s FOMC meeting. Nevertheless, traders will continue to apply buy-on weakness in stocks whenever the index starts a bearish correction.

Illinois Tool Works Inc (ITW)

ITW share prices look trading near the daily SMA 100 and under bearish pressure after the rejection from the daily SMA 200. We could see the share prices range between $233.00 – $250.00 and it might continue lower right now. Traders could use the daily SMA 100 and the bottom of the range for a chance to enter long positions.