Stock futures are lower on the prospect of higher interest-rate

The higher interest rate continues to become a major topic to watch after stronger-than-expected U.S. job data. Initially, traders think that the Fed will stop rate-hike and switch to rate-cut. But, at the end of the day, it seems there is no confirmation yet on what the Fed will do. Traders could expect more up and down in the stock market until the next earnings release. We think it is better to stay cautious and enter defensive stocks only for now.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index attempted to extend the bullish movement yesterday but at the end of the day, it made a bearish close. It seems the bullish scenario might be put to hold. At the current time, DJIA futures are lower by more than 100 points. Will we see a continuation of a bullish trend? Alternatively, will the index start moving lower again and close below the daily SMA 200 to resume the bearish movement?

Devon Energy Corp (DVN)

DVN share prices currently trading near the daily SMA 200 and the bullish trendline. The share prices might continue to consolidate between it and eventually make a breakout. Traders will prepare to enter the position when a breakout happens. We think there is a high chance a bearish breakout might happen. However, traders might want to stay bullish especially when the share prices could return above the daily SMA 200.