Stock futures mostly flat after a bullish week

The stock futures are trading near the opening level this week after a major bullish reaction last week. Traders are betting on more upside as the debt-ceiling issue is resolved. Despite the situation, traders will stay cautious as the market might refocus on the economic data again. Only enter long positions when a bearish correction happens and observe the situation while hoping for a resistance level break.

Technical Analysis

Dow Jones Industrial Average (INDU)

Last week, the DJIA index surged upward after the confirmation that the U.S. averted bankruptcy. The debt-ceiling issue has been resolved and traders are rejoicing. However, the index has not yet broken out from the daily SMA 200 and the trendline range. This week, we might see a test on the trendline and traders will observe the index reactions closely. If the index could break out and close above the trendline then there is a chance of bullish continuation. However, if the index reverses the direction then the consolidation between the daily SMA 200 and the trendline will continue.

Deere & Co Com (DE)

DE share prices is trading inside a bearish channel and no change to the situation yet. The share prices currently moving upward in a bullish correction. On the upside, when the share prices tested the cluster of averages, traders could expect bearish reactions. Traders could enter short positions when there are bearish reactions near the resistance levels.