U.S stock futures recover after initial bearish pressure

The DJIA futures currently trading at -81 points after dropping nearly 200 points. The index futures stage recovery and might attempt to open the day on a neutral level. Traders and investors are preparing for the job data release at the end of the week or tomorrow. Yesterday, ADP non-farm employment recorded a 208k increase vs. a 200k increase.

Stronger job data could help ease bearish pressure and give more room for the Fed to postpone interest-rate increases.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index is currently in a bullish corrective movement toward the 30,500 – 31,250 area. Traders will wait for the index to reach the level and produce bearish reactions to enter short positions in stocks. However, if the index could break out and print a higher high on the chart then the trend will turn bullish.

We think the bullish scenario is less likely to happen unless we have good news on inflation data and this month’s FOMC meeting.

Newmont Corporation (NEM)

NEM share prices undergo bearish correction since the $86.37 top and currently reach the monthly SMA 200. The price is also discounted 50% from the top which means the current price is a good price to enter long positions. In September, the price formed a bullish close for the first time after a five-month bearish movement.

If the price could maintain the position near the monthly SMA 200 then there is a chance of a bullish reversal.