Stock futures rise before the market opens in the prospect of extending the biggest one-day rally since 2020

DJIA index futures are trading upward more than 100 points which indicates a bullish continuation in today’s trading session. Traders turning optimistic that the Fed will stop rising interest-rate aggressively in the coming FOMC meeting. It seems the effort to curb inflation has started showing results and but it might be too early to hope for the start of a new bullish trend.

Despite the situation, traders will start preparing for bullish positions when a major bearish movement happens after the current bullish movement reverse.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index situation on the daily chart is interesting as it broke above the 32,500 – 33,250 area and the bearish trendline. On the upside, if the index could print a higher swing high then the overall trend will turn bullish for the medium-long term. However, if the index reverses and closes lower below the trendline next week then the bearish trend will resume again.

Sketchers USA Inc (SKX)

SKX share prices trading upward in a bullish correction toward the daily SMA 200. There were several attempts on the averages in the past which results in bearish rejections. If the share prices experience another bearish rejection then traders could enter a short position with a tight stop above the averages.