Stock futures pointed upward after strong Wednesday’s rally

The direction turn bullish for the stock market after Fed Jerome Powell said the Fed sees smaller interest-rate hikes in the future. We might see a rally in December which could bring the DJIA index back to the bullish trend. If the index closed near the yearly opening level it could become a major reason that the rally could continue next year.

We think it is extremely optimistic despite the gloomy outlook for next year. Traders will stay cautious and see the market movement in December.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index turn higher again after Fed Jerome Powell said the Fed see a smaller interest-rate hike after the December rate hike. No retest on the daily SMA 200 or the broken trendline and the index printed a new higher high yesterday. It seems the index could continue the upward movement to start a new bullish trend.

Altria Group Inc (MO)

MO share prices broke and close above the daily SMA 200 which confirm the initial trend reversal. If the share prices could continue to maintain the position above the averages and bounce with strong bullish momentum then the bullish trend could continue. On the other hand, if the share prices move lower and close below the daily SMA 200 with strong bearish momentum then the bearish trend could continue.