U.S stock futures are higher after last week’s selling

The movement of the stock market might be bullish at the beginning of the week as the market attempts to recover from last week’s drop. Traders will continue to observe the market movement this week which might start with bullish sentiment but might turn bearish again after the upward movement loses steam. On the lower side, traders will continue to aim to add more long positions for long-term

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index started a bearish correction and might reach the horizontal line as shown on the chart. The current situation might continue for several weeks until the next FOMC meeting. Despite the bearish situation, traders will continue to accumulate long positions in stocks as the worst might be over. On the daily chart, as long as the daily SMA 200 holds against bearish pressure, there is no reason to enter short positions.

Apple Inc (AAPL)

AAPL share prices dropped sharply last week which signals a further decline in the share prices. Traders will wait near the support level for bullish reactions and a chance to enter long positions. On the lower side, the daily SMA 200 will become the major focus of bullish reactions if the bearish pressure overshoot. Without any bullish reactions, it is better to avoid entering long positions as the current situation is like chasing “falling knives”.