Stock futures pointed upward in an attempt to rebound after consecutive bearish closes
DJIA futures traded higher 299 points before the market opened which indicates a bullish bounce at the beginning of the week. Despite the situation, the overall situation is bearish which means the current bearish pressure could turn bearish immediately. Traders will stay sidelined for now and wait for the market to find a support level before deciding to enter long positions.
Dow Jones Industrial Average (INDU)
DJIA index trend is bearish and the index continues printing a new lower low on the chart. We might see a bullish bounce today but it might be short-lived. Traders will monitor the level around 31,500 and 32,500 for bearish reaction. In the medium-long term, we still expect the index to continue lower and target the 28,000 – 29,000 area.
Kraft Heinz Co (KHC)
KHC share prices undergo a massive selloff which happened in two days. The bearish pressure brought the share prices down to test the daily SMA 200. Under current bearish pressure, we might see the share prices consolidate near the level and continue the bearish movement below the daily SMA 200.
Traders will monitor the share price movement between the daily SMA 100 & 200 now.