Stock futures stage recovery after 10 bearish days

The situation of stock market seems grim after yesterday’s drop. Bearish correction turn into full-blown bearish movement. Despite the situation, the market seems will attempt to stage recovery today to erase previous day’s bearish movement. If the index could surpass yesterday’s high before the end of week then there is chance of bullish reversal.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index made a sharp bearish correction yesterday after the FOMC meeting. The market seems repricing on the Jerome Powell comment which mention less rate-cut next year. The current bearish movement has reached the daily SMA 100 with strong bearish momentum. If there is no bounce from the support level then traders could expect continuation toward the daily SMA 200.

Caterpillar, Inc (CAT)

CAT share prices turned lower yesterday and reached the daily SMA 200. The share prices will test the averages and looking for bounce from the levels. If the share prices could maintain its position above the averages and bounce from it then traders could expect bullish continuation. Under current situation, it is better to “wait and see” until actual bullish bounce happen before placing positions.