Stock futures continue under bearish pressure as yield crosses 5% for the first time since 2007

The Fed speech by Jerome Powell said that the current inflation is too high but the Fed might not be able to raise interest-rate next month. It seems traders will prepare for higher interest rates for longer. No sign of lower inflation numbers in the short term which means growth might be slowed and no major bullish movement in the stock market yet. Despite the situation, traders could continue to accumulate long positions when there is a bearish pullback.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index fell below the daily SMA 200 and will attempt to print a lower swing low on the chart. The current situation might be bearish. But, as long as there is no lower low printed on the chart, there is a chance for a bullish reversal. On the chart, a close above the daily SMA 200 could confirm the bullish reversal.

Mastercard Incorporated (MA)

MA share prices trading lower and are set to reach the daily SMA 200 soon. Traders will wait near the averages for bullish reactions. When there are strong bullish reactions, traders could enter long positions. However, if the bearish pressure continues to mount and the share prices print a new lower swing low then the bearish situation could continue.