U.S stock futures under major bearish pressure as Credit Suisse in trouble

Banking sectors become the major reason for the current bearish movement in stock markets. The recent banks which reported trouble are Credit Suisse which cause woes in European trading sessions. Europe banks stocks halted trading after a major slide in today’s trading session. It seems the bearish situation will continue until the end of the week and before the Fed FOMC meeting next week.

Technical Analysis

Dow Jones Industrial Average (INDU)

The bearish situation of the DJIA index has been confirmed and it is expected to continue lower to target the 30,500 – 31,250 area. At the current time, the index futures are lower than 500 points which suggest a bearish continuation. We think the current bearish movement will continue until the Fed decide that they need to support the market by QE or other measures.

Sketchers Inc (SKX)

SKX share prices reached the daily SMA 100 and might continue the bearish movement to target the daily SMA 200 next. Traders could wait near the daily SMA 200 for bullish reactions and a chance to enter long positions. Without any major bullish bounce, it is better to stay sideline for now.