U.S. Stock Market futures turned upward after strong earnings result

Strong earnings results from United Health and Morgan Stanley give a bullish signal for today’s trading. DJIA futures are up nearly 200 points after moving lower earlier. The stock market is expected to bounce from the previous week’s sell-off caused by the situation in the Middle East. However, the upward pressure might be limited as the world focuses on more updates on the conflict. Despite the situation, traders will continue to accumulate long positions whenever a bullish bounce happens after a bearish correction this year.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index bearish correction has started and entered the 37,750 – 38,000 area. The index might continue lower to target the blue horizontal line where traders will expect a bullish bounce to happen. When the index could absorb the bearish pressure and start a bullish bounce, traders could continue adding more long positions in stocks.

Home Depot Inc (HD)

HD share prices bearish movement almost reached the daily SMA 200 where it might find support. When the bearish pressure receded and the share prices could stage bullish bounce from the averages then traders could enter long positions. At the current time, it is better to wait the bearish pressure receded unless traders want to speculate by scaling in slowly until the daily SMA 200.