Stock futures pointed upward on the first day of June

The stock market attempted to start the month on the bullish side. At the current time, DJIA futures are slightly higher than 100 points. However, the bullish pressure seems slowly losing momentum. Traders will stay cautious as the current trend is bearish. At the end of the week, there are U.S job data releases that will help to gauge growth and inflation development.

We might not see a major bullish movement until the third quarter or the end of the year.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index currently sticks near the 33,000 handles, looking for a way to extend the bullish movement. On the upside, there is the daily SMA 50,100, and 200 to watch for a bearish reversal. We still think the bearish trend will continue and suggest traders wait for a bearish reaction from the resistance levels for confirmation.

Home Depot Inc (HD)

HD share prices undergo bearish correction and no major bullish sign yet. The share prices continue printing lower low and lower high on the chart and currently testing the daily SMA 50. Another bearish bounce might happen and the share prices might continue moving lower. On the monthly chart, HD currently trading near the previous bullish channel top.

If the bearish movement continues then traders will wait near the bottom of the bullish channel for a possible bullish reversal.