Stock futures under bearish pressure as fears spreading in the market

Traders and investors seem moving out of positions nearing the Fed FOMC meeting. In the next meeting, analysts expect a 50 bps rate hike. However, traders will observe closely the Fed’s outlook on the future interest rate. If more rate-hike is planned then it could push the economy into a recession which brings the stock market further lower.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index undergoes bearish correction and soon will reach the 32,500 – 33,250 area and the trendline. The medium-term situation is bullish which means we expect a bounce from the support levels. If the index could maintain the position above the levels and daily SMA 200 then there is a chance of a bounce and bullish continuation.

Exxon Mobil (XOM)

XOM share prices started a bearish correction and almost reached the daily SMA 100. Traders could treat the current bearish movement as a healthy correction. if the price continues to move lower then traders could prepare to enter long positions near the trendline or the daily SMA 200. Only enter long positions when the bearish pressure has subsided.