Stock futures might extend a bearish movement

Yesterday has been a bearish day for the stock market following the increase in oil prices. Depleting reserve in the U.S. and continued voluntary production cut by Saudi Arabia & Russia trigger bullish pressure in oil prices. If the oil prices continue to increase then we might see an upward tick in inflation readings. Rising inflation is not a good sign as the Fed will have more reason to raise interest rates. Despite the situation, it happened before the Fed interest-rate decision which confirmed the bearish scenario before the event. Traders will continue to use each bearish movement in the stock market to hunt for bargain and distressed stock, preparing for the upcoming bullish trends.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index came under bearish pressure yesterday and made a bearish close. The bearish close is near the daily SMA 50 and might have continuation toward the daily SMA 100 & 200. Traders will expect the situation to continue bearish nearing the Fed interest-rate decision. Nevertheless, the current bearish movement could become an opportunity for traders to enter stocks at lower levels.

First Solar (FSLR)

FSLR share prices bearish correction has reached the daily SMA 200 and there were bullish reactions. At the current time, the share prices were rejected from the daily SMA 50 & 100. We might see consolidation between averages and traders will continue to maintain bullish bias. As long as there is no new lower low on the chart then the next bullish breakout will become a bullish continuation confirmation.