Stock futures are mostly positive as the banking sector attempt to bounce

The U.S. stock market is set to open higher today following the bounce sign in banking sectors. Despite the bullish sentiment, the index looks will close the week on the bearish side. So far, May has proven itself as a sell-and-go-away month. Traders will continue waiting at a lower level for a chance to enter long positions. Each bearish correction is a chance for traders to add more long positions while preparing for the upcoming bullish trend.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index move lower and reached the level near the daily SMA 200. The index is set to stage a bullish bounce today as the index futures trade upward more than 100 points. We think the consolidation will continue between the daily SMA 200 and the trendline. Traders will continue waiting for a breakout from the range to confirm the index’s next direction.

Exxon Mobil Corporation (XOM)

XOM share prices are trading lower following the weakness in oil prices. At the current time, the share prices are trading near the daily SMA 200, and will wait for further reactions. A bounce from the averages and a new higher high will confirm a bullish reversal. Traders will use the averages to enter long positions with stops below the previous swing low.