U.S stock Futures Under Bearish Pressure Before Job Data

An interest-rate cut is scheduled in the next FOMC meeting. However, the market is reacting bearishly right now which is a normal situation. It seems the latest bullish movement has priced in the rate-cut announcement and currently the market has started to normalize. Traders will continue to use the current bearish movement as a chance to enter more long positions at a lower level. Today job data could play a major role in determining the Fed rate-cut plan. Further weakness in the job market will support the rate-cut plan.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index closed lower yesterday and might continue the bearish movement today to test the breakout point. If the index continues the bearish movement below the level then traders will expect bearish correction toward the daily SMA 100 or 38,000 handle. However, if the index can maintain a position above 40,000 by the end of the week then there is a chance of bullish reversal and upward continuation.

Seagate Technology Holdings (STX)

STX share prices is trading lower and soon will reach the daily SMA 100 where traders will expect a bullish bounce. When the share prices could produce strong bullish reactions, traders could enter long positions. On the lower side, the daily SMA 200 will also become the major support level to watch for bounce reactions. As long as the share prices maintain the higher high and higher low pattern there is no change to the bullish trend yet.