Stock futures are gearing for a bullish day after four days bearish close

The market situation has been bearish the entire week as coronavirus cases continue to increase. Traders and investors are also undecided on what the Fed will announce this month after mixed data. Today bullish sentiment seems to stem from the call between President Joe Biden and China’s Xi Jinping.

We will expect the market to trade sideways or risk-off mode nearing the Sep 21 Fed FOMC meeting.

Asian & European Stock market

The Asian stock market is mostly higher. Japan Stock market up 373.65 points (+1.25%) to 30,381.84, China stock market up 9.98 points (+0.27%) to 3,703.11, and Australia ASX 200 up 37.10 points (+0.50%) to 7,406.60. The European stock market also trading upward. DAX Germany up 0.39%, UK FTSE up 0.40%, Euro STOXX 600 up 0.27%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index made another bearish close and managed to close below the daily SMA 50. The index might continue its downward movement and target the daily SMA 100. However, the index futures are currently higher 177 points which might indicate a major bounce before the weekly close.

If the bounce has strong bullish momentum then we might see a bullish continuation in the coming week.

Aphria Inc (APHA)

APHA share prices look bounced from the horizontal area and the daily SMA 100. It is also surpassed the bearish trendline which might confirm the start of a new bullish leg. A close above daily SMA 50 will further confirm the bullish movement.