U.S. stock futures pointed upward after three days of losses

The U.S. stock market experienced bearish pressure at the beginning of the week as traders weighed on the Fed commentary. On Wednesday, the Fed Jerome Powell stated that the Fed will need more proof that inflation numbers moving toward the 2% target. Traders and investors seem translating the comment into a no rate-cut yet this year. Despite the situation, consensus sees a rate cut as early as the second quarter of this year. Traders will continue to prepare for the upcoming rate cut and accumulate more long positions when the stock market turns lower.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index started a bearish correction and almost reached the daily SMA 50. The index trend continues to be bullish and traders will wait for bullish reactions. No change to the bullish trend which means traders will continue to use each bearish correction in the stock market to add more long positions. On the lower side, 38,500 is the short-term support level while 37,000 is the long-term one. If the index breaks below 37,000 then the long-term trend will turn bearish.

Altria Group Inc (MO)

MO share prices broke out above the daily SMA 200 and currently undergo bearish correction. The recent bearish movement managed to push the share prices down below the averages. If the share prices could bounce from the trendline and return above the daily SMA 200 then the bullish movement could continue. On the lower side, the daily SMA 50 & 100 will work as support levels too.