Stock futures brace for a bearish pullback after a strong week

Last week, the U.S stock market rallied and closed the week at positive, erasing one month’s loss. Despite the bullish close, the index futures are currently lower more than 100 points as the market digests the situation. China reported a Boeing 737 passenger plane crash with 132 people on board. The event sends Boeing (BA) share prices lower 8% before the market open.

Traders and investors mostly will focus on the event and Russia – the Ukraine situation. The peace talk between Russia – Ukraine seems failed to reach an agreement.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index upward movement has reached the top trendline and getting near the cluster of averages. We might see the bearish reaction from the resistance levels and the continuation of a bearish trend. At the current time, traders will observe the index reaction near the trendline and cluster of averages. If a bullish breakout happens with strong momentum then traders will monitor for several days to get confirmation that the bullish breakout is valid.

On the other hand, bearish rejection with strong momentum is a signal to add short positions.

Texas Instruments Inc (TXN)

TXN share prices undergo a bullish correction and soon will test the daily SMA 100 & 200. There is a horizontal level around $182.50 to watch too. If the share prices get rejected from the resistance levels then traders could consider entering short positions. There is no confirmation yet at the current time, traders will observe the share prices reactions near the resistance levels for now.