Stock futures were steady at the beginning of the week

DJIA futures mostly trading sideway not far from the 0 levels. Traders and investors will focus on the bond market signal which indicates a recession is coming. Depending on the development, the situation could turn bearish suddenly. On Wednesday, the Fed will release the FOMC minutes of the meeting which are expected to show hawkish comments on the interest rate.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index failed to close the week above the daily SMA 200 but managed to breakout above the bearish trendline. Despite the situation, we still think the index will resume its bearish trend as no higher high printed yet. If the index could climb above 36,000 then a higher high will be printed and cancel the bearish outlook. Traders will continue to observe the index reaction near the daily SMA 200 for now.

Caterpillar Inc (CAT)

CAT share prices moving in a wide range as it shows mixed signals on the daily chart. In the previous movement, the share prices flip-flopped at the daily SMA 200. There is a lower low and higher high on the chart which means the situation is uncertain. At the current time, the share prices moving upward and attempting to print a higher high.

Without a higher high printed on the chart, a bearish movement might happen again below the daily SMA 200. If the bearish movement happens then traders will observe the reaction near the cluster of averages.