US Stock Market Technical Analysis | June 16, 2022

DJIA futures lower 500 points as post-Fed rally turn into fear

The stock market bracing for more bearish pressure as the DJIA futures trade lower by more than 500 points. The rally after the interest-rate announcement was short-lived and turn into a full-scale bearish movement. The Asian and European sessions also fall sharply today. Similar to the sentiment before the interest-rate announcement, the Fed will only raise interest-rate sharply to combat inflation. At the current time, the interest rate is 1.75% vs. inflation of 8.6%.

If inflation continues to increase then we might see several 100-125 rate increase this year.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index direction is bearish and there is no change to it yet. Yesterday’s bullish reaction was limited below Tuesday’s low which means not enough confirmation for a bullish correction. At the current time, the DJIA future is lower by more than 500 points which suggest a bearish continuation.

Traders will wait for a bullish correction toward a resistance level to confirm the next bearish leg.

Lockheed Martin Corp (LMT)

LMT share prices is in a bearish pullback below the daily SMA 100. The share prices could target the daily SMA 200 and the area between $375.00 – $400.00. Traders will observe the share price reaction near the area. If the global stock market turns bullish then traders could enter long positions near the area.

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