Stock futures are flat as traders prepare for monthly closing

November has been a major bullish month this year as DJIA rallied from 33,087 to as high as 35,456. In short, we have a 7% gain this month and only three days left. We might see a continuation of bullish movement next month, however, a bearish correction is also due. Traders could prepare for a bearish correction near support level for chance to enter more long positions.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index hanging near the high and has not shown any major weakness yet. If the index starts a bearish correction then traders could observe the horizontal support level around 35,000 for bounce reactions. We think the bullish trend could continue but a bearish correction is also possible. When a bearish correction happens, it is a chance for traders to enter long positions in stocks at a lower level.

Walt Disney Company (DIS)

DIS share prices broke out above the daily SMA 200 and also printed a new higher swing high. It means the trend has turned bullish and a bearish correction toward the support level is a chance to add long positions. At the current time, the support level is around $90.00 and the daily SMA 200 will act as a support level when a bearish correction happens.