U.S stock market futures rallying after EU tariff delay

The announcement of tariff delay on weekend cause a surge in the U.S. stock futures. It seems the stock market will start moving bullishly this week. However, a bearish correction also due after prolonged rally. Traders will stay cautious for now and wait for pullback to add more long positions. If there is no pullback, then traders will continue to hold the long positions since the previous bottom.

June or July might be critical when the tariff deadline looming. The market could move with high volatility and traders better stay cautious.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index has reached the daily SMA 200 and looks stalling near it. It would be ideal if the index start moving lower to retest the broken neckline of double bottom pattern below. When the retest happens, traders will wait for bullish reactions to get confirmation to add more long positions in stocks. Otherwise, if the index immediately continues the bullish trend above the daily SMA 200 then traders who hold long positions will continue to hold it for medium-long term.

Walt Disney (DIS)

DIS share prices is trading upward and testing the previous swing high. No breakout from the level yet and the share prices might start a bearish retracement. If bearish retracement happen, then the share prices might target the daily SMA 200 or 100.00 level. Traders could wait for bullish reactions near the support levels for a chance to add long positions in DIS.