Sluggish pre-market

After the surge in U.S indices yesterday, the market ready for a sluggish open as Dow Jones Industrial Averages futures pointed lower -63 points. There is news from UK Theresa May unscheduled press conference, calling for an early general election in June. The move put a fire under UK Pound Sterling and bring it higher across the currency board.

Today outlook will weight on the earnings from Bank of America. Earlier, Goldman Sachs (GS) release disappointing earnings and revenue result. Earnings per share came out at $5.15 vs. $5.31 consensus, while revenue came out at $8.03 billion vs. $8.37 billion.

Technical Analysis

Dow Jones Industrial Averages (INDU)

The index found support after it slides heavily on Friday. The Monday close extremely bullish with almost a “Marubozu” candlestick. Though it is bullish, there is not much to expect until the index escapes from 20,500 – 20,800 consolidation area.

Cisco Systems (CSCO)

Futures setup in CSCO after the price fall further toward its daily SMA 100 where there is support area between $31.80 – $32.00. Traders could prepare for long position when the price touch the area and place the stop order below the white trendline.

Du Pont (DD)

Correction in the index also triggers correction in DD share price. The share prices revisit the top of broken channel and also the intersection of momentum candlestick. The area between $77 – $78 is expected support level where traders could look for a long position.