U.S stock futures gaining on the first day of June

The stock market ended May trading month with positive results. However, the bullish movement comes after major indices lost steam in the middle of the month and managed to settle above the opening level. Traders will expect the bullish movement of the index to continue while being cautious. If the inflation numbers soaring again and the Fed decide to tighten or delay rate-cut then we might see deeper bearish movement in the index.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index managed to bounce from the 23.6% Fibonacci Retracement level also the 38,000 handle. The index is expected to continue bullish movement and target the latest swing high. Under the current situation, the bullish trend could continue as long as there is no lower low below 38,000. A breakout below 38,000 and a new lower low will bring the index down to daily SMA 200 and 36,000.

Alibaba Group Holding (BABA)

BABA share prices make a breakout and retest of the resistance level. At the current time, traders could accumulate long positions near the breakout level and expect the continuation of the bullish trend. However, if the share prices turn lower again and print a new lower low then the bullish situation is canceled.