U.S stock futures continue bearish pressure after yesterday’s downgrade

The stock market situation looks bearish today after yesterday’s bearish move which was incited by Fitch’s downgrade. Traders will stay cautious as the market observes the BOE interest-rate decision. Tomorrow, there are job data releases that will give more clues on what the Fed will do next. Traders will continue to use each bearish attempt in the stock market to add more long positions.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index formed a bearish close yesterday after the debt-rating downgrade by Fitch. It seems the index has a chance to continue moving lower in today’s trading session. Despite the situation, traders will continue waiting for an actual bearish correction toward the support level for a chance to enter more long positions in stocks.

American Express Co (AXP)

AXP share prices trading above the daily SMA 200 which means the current trend is bullish. The share prices are testing the averages and waiting for further reactions. If the share prices could bounce with strong bullish momentum then a new higher low is printed and will confirm bullish continuation. However, if the share prices resume the bearish movement and print a new lower swing low then the trend will turn bearish again.