U.S stock futures flat ahead of job data

ADP non-farm employment shows a major increase which indicates a higher-than-expected NFP number. If the job data today show a strong number then it will give the Fed reason to stick with their rate-hike scenario. Traders will prepare for further bearish pressure. It is a chance for traders to add more long positions when a bearish correction happens.

Technical Analysis

Dow Jones Industrial Average (INDU)

A bearish correction is in progress as the index tests the broken trendline. Traders will monitor the index reaction near the trendline. We might see the index consolidating until this month’s FOMC meeting. Will the index bounce and continue the bullish trend? We think it is a highly likely scenario. However, there is a possibility the index might continue trading sideways until the end of the year too. Nevertheless, this 1-2 years is the best time to accumulate more long positions.

American Tower Corp (AMT)

AMT share prices trading upward and currently testing the daily SMA 100. If the share prices could break out higher then the daily SMA 200 will become the next upward target. However, if the share prices get rejected and start moving lower with strong bearish momentum then traders will prepare for a more bearish attempt to print a new lower low.