Stock futures pointed upward

The U.S. stock market is set to open higher in today’s trading session after the previous day’s bearish pullback. Traders are looking to push the stock market further upside before the next FOMC meeting. It seems the current bearish movement might continue and it is better to stick with long positions. Despite the bullish situation, we think a bearish pullback might happen post-FOMC meeting. When there is bearish pullback in the stock market, traders could add more long positions.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index hanging near a record high and there are slight bearish reactions. It seems the release of NVDA earnings might have a bearish impact on the index. If the index started a bearish correction then traders could wait near 40,000 or the support trendline for bullish reactions. We think the long-term trend will continue to be bullish and a bearish correction is a chance for traders to add more long positions.

Microstrategy Inc (MSTR)

MSTR share prices are under pressure but at an interesting position. The share prices keep testing the bottom of the triangle pattern and will attempt to bounce from it. If the share prices could bounce upward then the consolidation inside the triangle will continue with bullish bias. If the share prices break lower then the daily SMA 200 will become the best place to look for long positions.