Stock futures are near the flat level after yesterday’s rout

The Fed’s comment on interest rates brought the stock market significantly lower yesterday. It seems the market prepare for further rate-hike and recession after Jerome Powell’s speech. At the current time, DJIA futures trading is lower than 7 points and might continue near the flat level until the market opens. We think the market might continue the bearish movement this March – April and start finding the bottom for the next bull market.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index perfectly rejected from the daily SMA 50 and return inside the 32,500 – 33,250 area. The index might continue lower to retest the daily SMA 200 and the 32,500 support level. If a bearish breakout happens then we might see a bearish continuation to target the 30,500 – 31,250 area. On the upside, the index needs to break out and close above the top trendline to confirm a bullish continuation.

Royal Caribbean Group (RCL)

RCL share prices is in a bullish trend but might experience bearish pressure toward the daily SMA 50 & 100. Traders could either ride the downward movement or wait near both averages for long positions. In the medium-long term we think the share prices could continue upward but in the short-term will move down following the Fed’s hawkish sentiment.