U.S stock futures stage recovery after previous week bearish close

The global stock market start a bullish recovery this week in anticipation of the Fed interest-rate decision. Traders are expecting the start of a rate-hike this year which might happen 4 times. The global market situation will depend on the Fed decision and inflation situation. We might see further weakness this week if the Fed confirm the more aggressive rate-hike plan to battle inflation.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index extended the bearish movement below the daily SMA 200 last week. The index is at threat of further weakness this week. However, traders might start a pullback before the Fed FOMC meeting this week. We might see the index hovering near the daily SMA 200 before the announcement of interest rate.

The next direction will depend on the index reaction after the interest-rate decision. A close above the daily SMA 200 might turn the current bearish trend.

Qualcomm Inc (QCOM)

QCOM share prices started a bearish pullback after a rally from $122.17 bottom toward $193.58. The share prices look trading near a trendline and soon will reach the daily SMA 100. If the bearish pressure continues to mount then we might see a deeper pullback toward daily SMA 200 or the gap close level.

Traders will aim for long positions in the current bearish pullback after the bearish pressure recede.