DJIA futures lower more than 300 points after CRM earnings miss

The stock market is set for another bearish movement following a miss in earnings results by CRM. Company reported revenue of $9.13b vs. $9.17b and EPS of $2.44 vs. $2.38. It is the first time the company has missed a revenue estimate since 2006. It seems the bearish pressure in the stock market might continue until the end of the week. Traders will observe the release of U.S GDP data today which might give clues on how inflation effect the growth.

Dow Jones Industrial Average (INDU)

DJIA index moved lower and managed to reach the daily SMA 100 points. The index might extend the bearish movement to test the previous swing low. If the index prints a new lower swing low on the chart, then the trend might turn bearish for the medium term. We expect a bullish bounce will happen near the 38,000 level and traders better-waiting sideline for now. As long as the index maintains the formation of higher highs and higher lows, there is no reason to turn bearish for the medium-long term.

Walt Disney Company (DIS)

DIS share prices have been under bearish pressure and slowly moving lower. The share prices retraced 50% of their gain and now trading not far from the daily SMA 200. If the bearish movement continues then traders will wait near the daily SMA 200 for bullish reactions. When there are bullish reactions, traders could enter long positions expecting the long-term bullish trend will continue.