Stock futures pointed lower as the Fed set to tighten interest rates aggressively

DJIA futures are currently lower by more than 200 points which suggested a bearish opening. Traders and investors seem moving earlier before the release of the FOMC minutes of the meeting. In today’s minutes of the meeting, the Fed might express more urgency on the rate hike and shrinking balance sheet. If the hawkish sentiment is confirmed then the stock market is expected to continue under pressure.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index reverse its direction near the daily SMA 200 yesterday and printed a bearish close. If the index continues moving lower, especially below the daily SMA 50 then trades will expect the continuation of a bearish trend. On the other hand, a close above the daily SMA 200 will cancel the bearish scenario in the short term (The index needs to print a higher swing high above 35,824 to cancel the current bearish trend.

Mattel Inc (MAT)

MAT share prices printed a new top at $25.71 and currently undergo bearish correction. We could see it bounce from the daily SMA 100 but limited below the daily SMA 50. If the bearish correction continues then traders will observe the share prices near the daily SMA 200. Long positions could be taken between the daily SMA 100 & 200 with a stop below the daily SMA 200 or below the previous swing low of $19.17.