Stock futures slightly lower following three consecutive bearish closes

The stock market situation is once again back into bearish sentiment after upbeat sentiment last week. Traders and investors refocus their attention toward the Fed Jerome Powell this week and upcoming interest-rate decisions. Aside from the event, there is the release of prelim GDP data this week. Will the GDP number shrink again and indicate the economy is in a recession?

Traders will stay cautious ahead of the data and interest-rate decision. We might see selling pressure nearing the interest-rate decision but possibly bottoming out after the event.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index continue the bearish movement and printed a bearish close yesterday. The rejection from the daily SMA 200 might develop into a new bearish trend. However, traders will monitor the area between 32,500 – 33,250. If the area managed to reverse the current bearish pressure then we might see another retest on the daily SMA 200.

McDonald’s Corporation (MCD)

MCD share prices back into a bullish trend and now trading above the bullish trendline. Yesterday, the share prices broke below the trendline and might indicate a bearish correction. If the bearish correction continues then traders will wait near the cluster of averages for bullish reactions. Long positions could be taken near the cluster of averages.