U.S stock market set to open higher after previous week tech rout

The new covid Omicron threatened economic recovery. Moreover, the Fed has confirmed that a more aggressive tapering to cope with inflation increase. Last week, tech stock suffered a major setback which cause major volatility in bitcoin. The cryptocurrency continues the bearish movement at the beginning of the week and might drag tech stocks lower.

Despite the situation, the U.S stock futures currently trading upward. Traders and investors will continue observing the development of Omicron cases to gauge the market sentiments.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index managed to stick near the daily SMA 200 despite the bearish pressure last week. At the current time, the DJIA futures are higher by 190 points which indicates upward pressure at the opening of the market. A bounce from the current level with strong bullish momentum could start the December rally to target a new record high.

Gopro Inc (GPRO)

GPRO share prices failed to maintain the daily SMA 200 in the previous bearish test. However, the bearish pressure did not last long and the share prices reclaim a close above SMA 200. At the current time, GPRO is slightly lower after the rally and trades near a trendline. If a bullish bounce happens then there is a chance of bullish continuation.