U.S stock market ready for a rally after Russia pull backs some troops

The global stock market has been under pressure in recent weeks as tension escalates between Russia – Ukraine. Fortunately, there is easing today as Russia pulls back some of the troops located near the Ukraine border. At the current time, DJIA futures are higher by more than 300 points which indicates a rally.

Despite the positive development, traders will stay cautious as the situation could change radically at any time.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index made another bearish close below the daily SMA 200 yesterday and is at risk of further weakness. However, we might see a bullish correction movement today following the partial pullback of Russian troops. DJIA index might test the daily SMA 200 and look for a close above it. At the current time, a lower low and lower high has been printed. If the index could print a higher high then it will cancel the current bearish outlook.

Prudential Financial Inc (PRU)

PRU share prices reached a new high of $124.22. It is not far from the record high of $127.14 and might reach it this year. At the current time, the share prices trading lower and might target the daily SMA 200. Traders could use the averages and the level around $105.00 – 110.00 for a chance to enter long positions.