DJIA futures up 280 points indicating a bounce

The bearish situation of the global stock market continue this week after Russia sent troops to Eastern Ukraine. The move responded with sanctions by UK and U.S. At the current time, the world is waiting for further development between Russia – Ukraine. If the conflict continues to escalate then we might see more bearish pressure in the stock market.

The current bullish movement in the U.S stock futures could reverse anytime, traders might want to stay cautious for now.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index continue under bearish pressure yesterday and made another bearish close. The bearish movement was inspired by development in Russia – Ukraine. Nevertheless, the trend slowly switches to bearish and we might see a bearish continuation toward the bottom trendline. If the index makes a bullish movement then traders will observe the reaction near the daily SMA 200 or the upper trendline. Without a close above both levels, the trend will continue bearish.

Deere Inc (DE)

DE share prices are under bearish pressure and currently trading near the bottom trendline and cluster of averages. The bearish movement has strong momentum which might result in further weakness below the trendline before reversal. Traders will observe the share prices reaction near the current level for a chance to enter long positions. Only enter long positions when the bearish pressure has subsided.