Stock futures lower as treasury yield climbs to highest level since 2007

The stock market bearish sentiment seems will continue for now as treasury yield continues to climb to a level not seen since 2007. Climbing yield might signal an upcoming recession or downturn in the stock market. Despite the situation, the current bearish market might also be near the endpoint. Traders will continue to use each bearish moment in the stock market for a chance to accumulate long positions.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index continues under bearish pressure below the daily SMA 200 and there are no significant bullish reactions yet. The index might stick near the current level consolidating while waiting for further reactions. If the bearish pressure continues to mount and a new lower low is printed then the bearish trend could continue. On the upside, a close above the daily SMA 200 could become the initial bullish confirmation.

Chesapeake Energy Corp (CHK)

CHK share prices are trading upward inside the bullish channel as shown on the chart. At the current time, the share prices are under pressure and located near the bottom of the channel. Traders will observe the share price reactions near the bottom of the channel. When there are bullish reactions, traders could enter long positions targeting the top of the channel.