U.S stock futures higher after consecutive bearish closes

The stock market is set to open higher today after the personal consumption expenditures price index aligns with expectations. Traders seem preparing for next week’s FOMC meeting which is expected to hold interest-rate steady. If the FOMC meeting announces a surprise rate cut, the stock market will jump sharply upward.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index headed lower to test the previously broken swing high. The index might bounce or consolidate near the breakout point and traders will wait for reactions. If the index continues moving lower then it will target the daily SMA 100. At the current time, traders could continue to use each bearish correction in the index as a chance to add more long positions in stocks.

Ralph Lauren (RL)

RL share prices are under bearish pressure and might continue moving lower to close the previous bullish gap. Traders will observe the share price reactions near the gap level. If the share prices could bounce upward with strong bullish momentum, traders could add long positions. A gap close is not mandatory which means reactions near the daily SMA 200 could become the bullish indication to watch for.