Stock futures gaining as traders await banks earnings result

The DJIA futures are currently up 121 points before the market opened. Citigroup reported better than expected earnings. Eps come out at $2.19 vs. $1.68 expectation. Revenue also tops analysts’ expectations at $19.64 billion vs. $18.22 billion. Meanwhile, core retail sales show a positive 1.0% increase compared to the 0.7% expectation.

Despite the bullish build-up, traders will prepare for a sudden bearish reversal nearing the Fed FOMC meeting at the end of the month.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index trading was lower yesterday but managed to return near the opening level. The index futures are currently up more than 100 points which indicates a bullish continuation. If the index continues upward then it will return inside the horizontal range. Traders will continue to monitor the index reaction near the area. A bearish reversal from the area could trigger a bearish continuation to target a new lower low.

Visa Inc (V)

V share prices undergo consolidation between the 23.6% Fibonacci Retracement and the cluster of averages. Each time the share prices tested the averages, the share prices got rejected and fell toward the support level. If there is no change to the situation then we will see another bearish rejection where traders could enter short positions with a stop above the previous swing high.