Stock futures gaining on the hope of a bullish reversal

The stock market might open higher today as DJIA futures are trading upward 70 points. The bearish pressure on the stock market continue for the past week as bet on interest-rate hikes continues to increase. The latest comment from the fed governor shows that the U.S. economy might enter recession in the second or third quarter. Under the current situation, it seems the stock market still has some leg to move lower before a full bullish reversal.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA is mostly bearish and soon will reach the daily SMA 200. The index printed a bullish close yesterday but not a decisive one. We might see further weakness in the index and traders better await for further development. If the index could maintain the position above the averages and bounce from it then there is a chance of bullish movement to retest the top trendline. However, if a bearish breakout happens then the index will continue the bearish movement to target a new lower low.

FedEx Corp Com (FDX)

FDX share prices have broken above the horizontal level as shown on the chart. The trend might have turned bullish and traders could use the broken level as a place to enter long positions. On the lower side, there is the daily SMA 200 too where a bullish bounce might happen when the price managed to reach it.