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

The debt-ceiling negotiations have not reached a conclusion yet but most predict that the debt-ceiling will be raised again. The current market situation is slightly bullish but might turn bearish again while the drama continues. Despite the situation, we think the market will turn bullish again after the debt-ceiling issue is settled. Traders could continue waiting for the stock market to move lower to enter long positions at a lower level.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index has broken below the daily SMA 200 which means the trend might continue bearish. A new lower low below the previous swing low is the strong bearish confirmation. We add a bullish trendline on the chart and notice that the index is currently testing the trendline. Will it continue the bearish movement and return above it after the debt-ceiling issue is settled?

American International Group (AIG)

AIG share prices look bearish with the share prices trading below the daily SMA 200. At the current time, the share prices moving lower after the rejection from the daily SMA 200. If the share prices trade lower and breakout below the trendline then the bearish trend could continue. However, if the share prices move upward and close above the daily SMA 200 also the trendline then the trend will turn bullish again.