US Stock Market Technical Analysis | May 09, 2022

U.S stock futures are under bearish pressure resuming the previous week drop

The stock market bracing for more bearish pressure this week after the previous week’s major bearish drop. The rally which happened after the Fed announced the interest rate was short-lived and the market has returned to its bearish track. At the current time, the world is observing the speech by Putin on Russia’s “victory day”.

DJIA index is lower by more than 400 points today which indicates strong bearish pressure at the opening of the trading day.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index is under major bearish pressure as its aims for a lower swing low on the daily chart. The trend is bearish and traders will continue to avoid taking more long positions in stocks for now. If a new lower swing low is printed then the bearish trend is set to target 30,000 or lower. Traders will use each bullish correction as a chance to enter short positions in stocks.

Walmart Inc (WMT)

WMT share prices started a bearish correction after reaching the $160.77 high. The share prices closed lower and currently trading at the daily SMA 50. We might see more bearish pressure from the current level which could drive the price down toward the daily SMA 200. If the share prices could maintain the position above the SMA 200 and bounce from it then traders could enter long positions.

United States Steel Corp (X)

X share prices traded lower and reached the daily SMA 200. There is no stop to the current bearish pressure yet which means the averages might come under test again. A bearish breakout below the averages could send the share prices down to target the trendline. Traders will continue to monitor the share price reaction near the current level for now. If a bullish reaction happens then traders could enter long positions.

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