Stock market futures pointed upward as tech shares rebound

Yesterday, the stock market spooked by Janet Yellen commentary which mentioned interest rate must increase to prevent the economy from overheating. Technology sectors mostly lower after the comment though manage to recover part of losses at the end of the trading session.

Today, the stock market set to move upward, shaking the bearish sentiment. Traders will continue to hold long positions for now and avoid shorting the market until there is a major bearish close.

Asian & European Stock market

The Asian stock market mixed while Japan and China out on holiday. Australia ASX 200 up 27.90 points (+0.39%) to 7,095.80. The European stock market mostly higher. DAX Germany up 1.32%, UK FTSE up 1.17%, and Euro STOXX600 up 1.33%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index mostly sideways near the top as shown on the chart. Yesterday, the stock market dumped after Janet Yellen’s commentary. However, the index managed to recover and closed the day on the positive side. Today, the DJIA futures trading upward 80 points which indicates bullish pressure.

Despite the bullish indication, it seems the index will continue trading sideline for now.

Dropbox Inc (DBX)

DBX share prices continue its bearish correction and tested the previous flip level. There is a bullish trendline too which supported the share prices. Traders could use the moment to enter long positions near the flip level and the trendline.