Stock market futures little changed as traders await GDP report

The stock market experienced a pullback yesterday after a strong result from Netflix. It seems the situation could turn bearish for the short term as traders weigh the chance that the Fed will cut interest-rate in March. Not much to expect for now, if a bearish pullback happens then it is a chance for traders to add long positions. The chance for a rate-cut might be lowered now for March, but when a rate-cut happens it should bring the stock market further upside.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index printed a bearish close in yesterday’s trading session. The index might start moving lower to test the horizontal level as shown on the chart. Traders will wait for a pullback in the index for a chance to enter long positions in stocks at a lower level. In the long term this year, we think the index could continue moving upward especially when the Fed starts to cut interest rates.

Lowe’s Companies (LOW)

LOW share prices broke out below the trendline and managed to reach the cluster of averages. The share prices might find support near the cluster of averages and bounce from it. However, if the share prices continue moving lower then the trend will turn bearish for the short-medium term. Traders could use the chance to add long positions when there are bullish reactions.