U.S stock futures pointed upward after two bearish closes

The bearish movement in the stock market last week is a profit-taking reaction. The market will focus on Biden’s decision to drop out of the presidential race this week. Not much has changed in the market situation, as traders will continue to use each bearish movement in the stock market as a chance to add more long positions at a lower level. Next week’s FOMC meeting could influence the market movement at the end of the week as traders prepare for no change in the interest-rate or surprise rate-cut by the Fed.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index is mostly lower, undergoing a bearish correction after a new record high. The index might retest the previously broken swing high and bounce from it. Traders will continue to use each bearish movement in the index as a chance to accumulate long positions in stocks. On the lower side, even though the index falls toward daily SMA 100 it won’t change the trend. A close below the 38,000 handle might become the bearish confirmation.

Freeport McMoran (FCX)

FCX share prices printed a new lower swing low, meaning the bearish leg could continue lower to target the daily SMA 200. Traders could wait near the horizontal level around $43.5 or the daily SMA 200 for bullish reactions. The bullish movement could continue when the share prices could bounce upward with strong bullish momentum. However, if the bearish movement manages to print a close below the daily SMA 200 and a new lower swing low, the bearish trend will continue.