Stock futures underwater after job data

The release of job data brought the stock market to a bearish area. At the current time, DJIA futures are lower by more than 200 points. Non-farm employment data recorded upward of 336,000 jobs compared to 170,000 expectations. It seems the market has confirmation that the Fed will raise interest rates by 25 bps in the upcoming FOMC meeting. Despite the bearish situation, traders will make use of the chance to accumulate long positions in stock when a downturn happens.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index might extend the bearish movement today as the DJIA futures currently lower more than 200 points. It seems the bearish trend will not change yet. Traders will observe the reactions near the previous swing low. If the index could maintain the positions above it and no lower low printed then there is a chance of bullish reversal.

Caterpillar Inc (CAT)

CAT share prices moving down and soon will reach the daily SMA 100 & 200. The current bearish correction might find support near both levels and traders will prepare for bullish reactions. When the share prices bounce with strong bullish reactions then traders could enter long positions.