U.S stock futures set to close the week positive after two bearish weeks

The situation of the stock market seems bullish after there is progress in debt-ceiling negotiation. Traders are looking to close the week on a positive note and stay cautious the rest of the month. We might see the stock market trading bearishly until the end of the month but expect more bullish sentiment later. Under the current situation, traders will continue to use each bearish correction as a chance to add more long positions at a lower level.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index bounced from the daily SMA 200 and will continue the consolidation between the averages and trendline. The overall situation might continue to be sideway and a bullish test might happen soon. Traders will continue waiting for the index to make a breakout and close outside of the range to confirm the next direction.

Waste Management (WM)

WM share prices have returned to its bullish trend and currently undergo a bearish correction. The bearish movement reached the trendline and show initial bounce reactions. Consolidation between the trendline and the previous swing high will happen and traders will wait for a breakout. Traders could wait near the bottom of the consolidation range to enter long positions, expecting a bullish breakout will happen.