U.S stock futures are lower following the jitter in the European stock market

Last week has been a major event for the U.S. stock market after the Fed announced a pause on rate-hike. Initially, the market reacted bearishly toward the Fed pause and plan of two more rate-hike this year. But at the end of the week, the index continue pressuring to the upside and notched the best week since March. This week, the market seems ready to start the week bearishly as the situation in Europe is concerning. More economic data show countries entering a recession. Despite the situation, traders will continue waiting for a bearish pullback in the stock market to enter more long positions at a lower level while expecting a new bullish trend after the recession.

Technical Analysis

Dow Jones Industrial Average (INDU)

The index trend has turned bullish once again after the climb above the trendline. A breakout from the trendline and the daily SMA 200 has happened and traders will expect each bearish correction met with bullish reactions. At the current time, if the index starts moving lower, traders could use the broken trendline as a place to enter more long positions.

Gamestop Corporation (GME)

GME share prices have broken above the daily SMA 200 and printed a new higher swing high. At the current time, the share prices undergo a bearish correction to retest the broken averages. Traders could expect bullish reactions from the cluster of averages and a chance to enter long positions. As long as there is no new lower low printed on the chart, the share prices could continue the bullish movement.