Stock futures building bullish momentum ahead of Jackson Hole symposium

Traders are awaiting the speech by Jerome Powell in Jackson Hole. We might see some high volatility movement depending on the market reactions after the speech. If the Fed decides to continue raising interest rates and maintain a hawkish outlook then the stock market will continue moving bearishly. Despite the situation, traders will continue to accumulate long positions anticipating an upcoming bullish trend in 1-2 years.

Technical Analysis

Dow Jones Industrial Average (INDU)

The bearish pressure on the DJIA index continued as the index printed a new bearish close yesterday. If there is no change to the situation then the index is expected to target the daily SMA 200. Traders will observe the index reactions near the averages. If the index could bounce with strong bullish momentum then the bullish trend could continue. On the other hand, a close below the daily SMA 200 will become a confirmation of a medium-term bearish trend.

McDonald’s Corporation (MCD)

MCD share prices pushed lower toward the daily SMA 200 and there were bullish reactions. At the current time, the share prices might consolidate near the averages and waiting for further reactions. If the share prices continue moving lower and close below the daily SMA 200 then the bearish movement could continue.On the upside, the daily SMA 100 will become the resistance level to watch.