DJIA futures raise more than 200 points before the market open

The index futures were mostly positive before the market opened today. It seems the market will attempt to build more bullish momentum after the previous week’s bullish close. The market seems to believe that the Fed will end its interest-rate hike after a sharp increase in the balance sheet. As mentioned before, traders could keep building more long positions in stocks while expecting that the sentiment will shift after the Fed stops raising interest-rate.

Technical Analysis

Dow Jones Industrial Average (INDU)

The bearish scenario of the DJIA index has not changed yet as the index continues printing a new lower high and lower low. At the current time, the index is testing the daily SMA 200 and will wait for reactions. If the index gets rejected with strong bearish reactions then the bearish movement could continue toward the 30,500 – 31,250 area. Without a new higher low, there is no change to the bearish situation yet.

Interactive Brokers Group Inc (IBKR)

IBKR share prices undergo a bearish correction and managed to bounce from the trendline in the previous attempt. However, there might be another bearish attempt soon and traders will monitor the price reactions. If the bearish movement continues and reaches the daily SMA 200 then traders will stay defensive and enter long positions only when the share prices could print a new higher high.

A breakout and close below the daily SMA 200 will confirm a new bearish scenario.