U.S stock futures under bearish pressure after recent rally

The U.S. stock market is set to open lower today as major indices take a breather after a strong rally. Traders will continue to hold long positions while expecting fresh bullish reactions near support levels. When there are bullish reactions near the support level, traders could add more long positions. As mentioned before, the Fed is expected to start cutting interest rates in September. If the Fed decides to cut the rate earlier in July then the rally could continue.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index breakout above the previous swing high and printed a new record high. The index will continue the bullish movement and traders will wait for a bearish correction in the index for a chance to add more long positions at a lower level. On the lower side, the 40,000 handle is the place to look for bullish reactions. As long as the index can print new higher highs and higher lows, the trend will continue bullish.

Shopify Inc (SHOP)

SHOP share prices broke above the trendline, daily SMA 200, and the latest swing high. The share prices might resume the bullish movement immediately or start a bearish correction to retest the breakout point. Traders could use the level around daily SMA 200 or the horizontal line for a chance to add more long positions.