Stock futures are slightly lower ahead of major retail earnings

The stock futures trading slightly lower at the beginning of the week after another strong weekly performance. Traders and investors are awaiting earnings results from major retail companies. Walmart, Target, and Home Depot are among the companies which will report earnings this week.

Despite the current rally in the stock market, it seems the market players regard the current bullish movement as a bear market rally. September sentiment might turn bearish once again nearing the Fed interest-rate decisions which means traders might want to stay cautious.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index managed to clear the previous resistance area and extend the upward movement toward the daily SMA 200. The situation might be neutral for now and traders will observe reactions from the daily SMA 200. On the lower side, the broken area will become support level when bearish movement happens.

Uber Technologies Inc (UBER)

UBER share prices traded upward significantly and managed to reach the daily SMA 200. There is a resistance area to watch near the averages which might trigger a bearish reversal. If a bearish reversal happens then traders could enter short positions targetting the nearest support level as shown on the chart.

A breakout and close above the daily SMA 200 and the area will confirm bullish continuation.