U.S stock futures pointed upward on the first day of October

The stock market suffer a major pullback yesterday to close the September month significantly lower. Up until now, the September bearish performance is constant and reliable. October might see the continuation of the bearish pressure but usually becomes the turning point for the rest of the year.

On the fundamental side, the U.S government avoided shutdown after a deal was reached to keep the government open until 3 December.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index resume the bearish movement and closed lower yesterday. The index might set a bounce today as the index futures off from the low and trades upward 172 points. If the bearish movement continues then a test on the horizontal line or the daily SMA 200 is imminent. Will the index maintain the level near the average and start a bullish bounce next?

Nike Inc (NKE)

A major bullish gap was shown on the NKE chart after June’s earnings report. The share prices continue moving upward and seem to make a parabolic movement. At the current time, the share prices are trading near the daily SMA 200 where it might be a good place to add long positions.

If the bearish pressure persists then traders will assume the gap level will be closed. A stop could be placed below the previous swing low or around $126.00