U.S stock futures gaining after yesterday bearish close

The U.S. stock market is turning positive today after yesterday’s bearish continuation. It seems the market are looking forward for the Fed to start cutting interest-rate. At the current time, the market uncertainties stay high, which prompt traders to stay cautious. A bearish movement is a chance for traders to add long positions, however, traders will wait until the bearish momentum receded before entering positions.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index resume the bearish movement and has not closed the gap on the upside. The index might continue moving lower to test the previous swing low. However, there is chance of bounce from the current level too. Traders will observe closely the index reactions for now. A double bottom pattern will become strong confirmation for bullish reversal and chance to enter with high risk:reward ratio.

Reddit, Inc (RDDT)

RDDT share prices fell and closed the gap around the 78.6% Fibonacci Retracement level. The share prices will attempt to bottoming out near the current level. If there is bearish continuation, then traders will wait for the formation of a double bottom pattern before deciding to enter long positions. On the upside, a close above daily SMA 200 will become the confirmation of a new bullish leg.