Stock futures crawl upward attempting to recover losses

The stock market might open higher today as DJIA futures are currently up nearly 100 points. However, traders might want to prepare for a bearish correction continuation too as the current rally losing steam. If the bearish correction happens then it is a chance for traders to add more long positions at a lower level. Shorting is not suggested as the long-term trend is bullish.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index bullish trend undergo a bearish correction after a major bearish close yesterday. We might see a bearish correction as deep as 36,000 or 35,000 before the first earnings season this year. Despite the bearish outlook, traders will continue to aim to accumulate long positions in stocks whenever a bearish movement happens. We still think the bullish trend could continue in the long term as a new higher swing high has been formed.

Walt Disney (DIS)

DIS share prices have broken above the daily SMA 200 and are now back to the bullish trend. At the current time, the share prices currently undergo bearish correction to retest the averages. Traders could accumulate long positions assuming the bullish trend will continue. On the lower side, as long as there is no lower low printed on the chart, there is no reason to become bearish yet.