U.S stock futures pointed to the bearish side after two days rally

DJIA futures are currently lower than 270 points which indicates bearish pressure at the opening of the stock market. The bearish reaction is normal after two days of a rally in the stock market. The overall sentiment is bearish for the medium-long term which means the current bullish movement is a temporary relief rally only.

Traders will continue to monitor the release of inflation data, the Fed interest-rate decision, and the companies’ earnings results this month.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index started a bullish movement which is a bullish correction movement toward the 30,500 – 31,250 area. We think the bull will lose its momentum near the area and a bearish rejection will happen. If the index forms bearish reactions then traders will scale out of long positions and weigh more on the bearish positions until a new higher low is printed on the chart.

Wynn Resorts LTD (WYNN)

WYNN share prices are trading upward and reached the daily SMA 200. It is a vital moment for the share prices. Will it break out above the averages and continue the bullish movement? Alternatively, will it get rejected and resume the bearish trend below the daily SMA 200? Traders will place more weight on the bearish scenario but are open to the bullish scenario too when a major bullish breakout happens.