Stock futures trade lower as uncertainties on interest-rate mount

The stock market situation turn cautious again after the Fed continue sending signals that 1-2 more rate-hike will happen this year. Despite the situation, we think each bearish movement might not be severe compared to 2008 and it is a chance for traders to continue adding more long positions in stocks. The U.S. might enter recession as Eurozone has confirmed recession while inflation remains at a high level.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index undergoes a bearish correction to retest the broken trendline. It is up to the index to either bounce from the trendline or return inside the daily SMA 200 and trendline range. Nevertheless, traders will continue to accumulate long positions in stocks, anticipating a new bull market that might start 1-2 years forward.

Intel Corp (INTC)

INTC share prices have broken above the daily SMA 200 which means the trend has turned bullish again. Also, the share prices printed a new higher swing high in the process. At the current time, the share prices is trading lower toward the daily SMA 200. Traders will monitor the reactions near the averages. When there is bullish reactions, traders could enter long positions with a stop below the previous swing low.