U.S stock futures dropped before market open

The historic bounce of the stock market happened yesterday, and it is understandable if there is a bearish pullback today. Nevertheless, the situation looks bullish and a bearish pullback might not long-lasting. Traders could use the chance to do short-term trading. Overall, we still think the tariff situation will limit market enthusiasm. The stock market might start to range after the bullish movement lost upward pressure. Alternatively, if yesterday’s move deemed as insider manipulation then the situation might turn bad.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index printed a massive bullish candlestick yesterday, which might sign a short-term bullish reversal. There is talk about an engineered move by President Trump but traders will focus on technical and remove the noise. If the index turn lower, then the 50% Fibonacci Retracement level and 39,500 level will become the major support level where the index expected to bounce.

Automatic Data Processing (ADP)

ADP share prices trading upward with strong bullish momentum and return above daily SMA 200. The share prices printed a bullish engulfing pattern and might resume the upward movement. If the share prices made a bearish pullback, then traders could use the daily SMA 200 as a place to add long positions.