U.S futures looking for direction before Powell testimony

The U.S stock market futures traded flat on anticipation of Jerome Powell testimony to Congress. In the previous day, the Fed Chief jolted the market with hawkish testimony. In the testimony, Powell defended The Fed plans for one interest-rate hike for every three months. Further hawkish comment today will push U.S dollar to the moon.

Analysts think Powell will repeat the hawkish comment today. On the earnings line, Morgan Stanley (NYSE: MS) and Abbott Laboratories (NYSE: ABT) set to report earnings before the market open.

Alphabet Inc.’s Google might come under pressure today as EU set to impose antitrust penalties up of $5.06 billion. The decision will be taken Wednesday morning on whether Google had abused dominance on its Android system to promote its apps as well as services.

Asian & European Stock market

Asian stock market mixed on strong U.S dollar. Nikkei closed up 96.83 points (+0.43%) to 22,794.19, Shang Hai Composite closed down 9.69 points (-0.35%) to 2,788.44 and Australia ASX 200 up 41.50 points (+0.67%) to 6,245.10. European stock on the path higher. DAX Germany up 0.70%, FTSE UK up 0.54%, and Euro STOXX 600 up 0.47%.

Technical Analysis

Dow Jones Industrial Average (INDU)

A trendline test is under progress in Dow Jones Industrial Averages. If the index follows our projection, then it should start descending from the trendline. Otherwise, strong earnings and improving situations on trade issues could lead the index breakout above the trendline.

Eaton Corp PLC (ETN)

ETN share prices respected two trendlines by bouncing up and down between both of it. Currently, the share prices hit the top of the trendline and cluster of moving averages. If the situation continues then, we will see ETN rejected from the top trendline and started descending to the bottom trendline.

Lockheed Martin (LMT)

The bull is in control for recent LMT share prices movement. Prices are steadily moving up and almost hit the daily SMA 200. Aside from SMA 200, there is a flip area where prices change trend when moving past it. Will LMT rejected from the flip area or breakthrough above it?