Stock futures slightly lower after debt downgrade by Fitch

U.S stock market is set to open lower today following the downgrade in U.S. long-term debt rating by Fitch. Despite the situation, traders will continue to monitor the release of earnings results. If the stock market starts a bearish correction then it is a chance for traders to enter more long positions. At the end of the week, traders will observe the release of U.S. job data.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index stays near the high and no sign of bearish correction yet. The index might show some reactions after the release of U.S. job data this week. If the index starts moving lower then traders could wait near the horizontal line around 34,500 for bullish reactions. Whenever the stock market starts a bearish correction, it is a chance for traders to enter more long positions while preparing for the upcoming bullish trend.

Microsoft Corp (MSFT)

MSFT share prices are clearly in a bullish trend and recently printed a new higher swing high. It is currently under bearish pressure and manage to reach the daily SMA 50. Traders will use the chance to add long positions near the averages when there are bullish reactions. However, if the share prices continue the bearish movement then daily SMA 100 could become the place to look for long positions too.