U.S stock futures gaining as companies report earnings

Yesterday, all major indices in the U.S enjoyed a strong rally amid stronger-than-expected earnings results. The current upward movement might continue as more companies report earnings. It seems the bar is really low for companies to beat earnings as fear has already taken hold in the first quarter. It means traders could expect more companies reported better than expected earnings results which will trigger bullish movement in the index.

However, next week, there is FOMC interest-rate decision that could trigger massive volatility in the market. On the global market side, UK inflation continues to increase and hits 40 year high at 9.4%. When inflation peaks, it is time for the stock market to stabilize and build a new base for the next bull market.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index broke above the consolidation range and also closed above the daily SMA 50. The index might continue upward to target daily SMA 100 & the level near 32,500. Traders will continue to monitor the index reaction near resistance levels and treat the current movement as a corrective movement before further weakness.

Dicks Sporting Goods Inc (DKS)

DKS share prices are in a bullish correction move and currently reach the daily SMA 100. There is upward room toward the $100.00 handle where a bearish rejection might happen. If the share prices could climb and close above the daily SMA 200 then the trend will change from bearish to bullish. On the other hand, bearish rejection could trigger limited bearish continuation.