U.S stock futures under pressure as banking shares tank

The collapse of Silicon Valley Bank triggers a sell-off in the global market. Financial sectors are the losers and will continue under pressure for now. We think the situation will continue for a few days and traders will stay cautious about the possibility of another bank’s failures. Despite the bearish situation, we think traders could continue accumulating long positions in shares and await for bullish turnover after April or the second half of this year.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index is in a bearish trend again below the daily SMA 200 which means no reason for traders to turn bullish yet. The bearish movement might continue to target 30,500 – 31,250. Traders will either wait for the pair to move upward and test the 32,500 – 33,250 area or move lower to test 30,500 – 32,250. Without a close above the daily SMA 200, there is no reason to enter long positions yet.

Analog devises Inc (ADI)

ADI share prices look to undergo bearish correction from the top. The pair might continue lower to test the daily SMA 50 where traders will wait for bullish reactions. A successful bounce from the level might confirm a bullish continuation to target a new higher high. If the pair continue the bearish movement below the daily SMA 50 then traders will wait near the daily SMA 100.