Stock futures are slightly higher in an attempt to recover from the previous day’s dump

DJIA futures are higher by more than 100 points at the current time. The bullish situation might be a temporary reaction before the Fed FOMC meeting. We might see further weakness after the announcement as the Fed might announce a swifter rate hike to combat inflation. However, there is a possibility a bounce might happen. Traders will use the moment for the chance to scale out of long positions or enter short positions near resistance levels.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index printed a lower low which confirms further bearish continuation. If a bullish correction happens then the nearest resistance level is the level around 31,500. On the lower side, a 30,000 support level might provide the base for a temporary bounce. Under the current situation, traders will continue waiting for a bullish correction for a chance to enter short positions near resistance levels.

Amerisourcebergen Corporation (ABC)

ABC share prices are under bearish correction and soon will reach the daily SMA 200. We might see a bullish reaction from the averages and enter long positions near it. If the share prices breakout and close below the daily SMA 200 then it is time to stay sidelined until the bearish pressure recedes.

We think the share prices might start trading sideways near the averages and build a strong base before rallying.