U.S stock futures slightly lower as traders focus on debt-ceiling negotiations

Tuesday’s meeting between Joe Biden and Kevin McCarthy failed to achieve consensus on the debt ceiling. The failure give bearish pressure on the stock market and today DJIA futures trading lower 60 points before the market opened. We think both parties will reach a consensus before June, 1st deadline. Traders could continue to accumulate long positions while waiting for further bearish pressure to add more positions.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index reverses the upward movement and starts moving lower again. If the index continues the bearish movement then it will retest the daily SMA 200. Traders will continue to wait for the index to make a breakout from the daily SMA 200 and the trendline to confirm the next directions. Without a breakout then the index will continue ranging between the daily SMA 200 and the trendline.

Las Vegas Sands Corp (LVS)

LVS share prices undergo a bearish correction and currently reached the daily SMA 50. The share prices might consolidate near it or continue the bearish correction to target the daily SMA 100 next. Traders could prepare to enter long positions near both averages when there are bullish reactions. As long as the share prices continue printing a new higher high and higher low, traders could continue to hold long positions.