Stock futures slightly higher after bearish week

The stock market situation is bearish last week as it undergo a bearish correction. At the current time, stock futures are slightly up before the market opens which indicates a bullish recovery. Traders will stay cautious ahead of the Fed FOMC meeting next month. Also the situation in China could give more bearish pressure on the stock market this week. Despite the situation, traders could use the moment for chance to add more long positions in stocks.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index bearish correction has reached the 34,500 level and might extend toward the daily SMA 200. At the current time, traders will wait for bullish reactions from the support levels for a chance to add long positions in the stock. In the long-term, we still think the index could continue the bullish trend and surpass the latest swing high.

United Airlines Holdings (UAL)

UAL share prices undergo a bearish correction and manage to reach the cluster of averages. The share prices might continue to stick near the averages to test it for now. If a bullish reaction happens then traders could consider entering long positions targeting a new higher high. However, if the pair continue the bearish movement below the daily SMA 200 and print a new lower low then the bearish movement could continue for the medium-long term.