Stock futures continue to decline after yesterday’s plunge

The bearish sentiment continues to cloud the stock market as major indices made major bearish movements yesterday. There is no bullish sign as the DJIA futures are currently lower by 282 points. Disappointing earnings results become the major factor of the current drop. Higher inflation seems taking a toll on the retailers and more companies are alerted on higher goods pricing.

No change to the medium-long-term outlook yet, traders will stay cautious and wait for the bearish scenario playout before placing any major long positions.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index is in a bearish trend now as bearish rejection happened near the flip level. Traders will need to open a higher time-frame chart to determine possible bounce locations. On the weekly chart, the weekly SMA 200 and the 28,000 – 30,000 area might become the major support level to watch.

Target Corp (TGT)

TGT share prices plunge after the latest earnings report. The bearish movement has strong momentum which might push the share prices further lower. At the current time, the share prices have retraced 50% from the top. Traders will observe the 61.8% – 78.6% retracement level for a possible bounce.

On the lower side, the $80.00 – $100.00 levels might become major support levels where long positions provide high odds for success.