U.S stock market set to continue bearish movement

Stock futures are mostly negative today, prompting a bearish continuation. This is normal after a new record high. Under the current situation, traders could wait until the bearish pressure subsides for a chance to add more long positions in stocks. Traders will mostly focus on earnings releases which might influence the rest of year sentiment.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index made a bearish close yesterday which might indicate the start of bearish correction. The trend is bullish which mean traders will wait for bullish reactions near support level for chance to add long positions in stocks. On the lower side, 42,628, 42,000, and 41,000 will become the levels to watch as support levels. It is better to avoid short positions as the trend is bullish and the index might continue upward with or without bearish correction.

Home Depot Inc (HD)

HD share prices printed a new higher swing high and might start a bearish correction from the current level. On the lower side, traders could watch the level near the previous swing high or the 38.2% Fibonacci Retracement level. When the share prices form bullish reactions near the support level, traders could enter long positions targeting a new higher swing high.