The stock market is ready for a bullish day after the previous week bearish close

DJIA futures are higher 156 points and indicate a higher opening today. Last week, the major indices experienced full bearish consecutive days which means today’s bullish sentiment might be a temporary bounce reaction. Traders and investors might continue to scale out long positions nearing next week’s FOMC meeting.

Asian & European Stock market

The Asian stock market is mostly higher. Japan Stock market up 65.53 points (+0.22%) to 30,447.37, China stock market up 12.26 points (+0.33%) to 3,715.37, and Australia ASX 200 up 18.60 points (+0.25%) to 7,425.20. The European stock market also trading positively. DAX Germany up 0.74%, UK FTSE up 0.56%, Euro STOXX 600 up 0.48%

Technical Analysis

Dow Jones Industrial Average (INDU)

A major bearish close happened in the DJIA index last week. The index closed lower near the daily SMA 100. If the index continues its bearish movement and breakout below the SMA 100 then it might target the SMA 200. At the current time, DJIA futures are higher 156 points which indicate a bounce from the averages.

International Business Machine Corp (IBM)

IBM shares prices seem to consolidate between the two red horizontal lines shown on the chart. It is not far from the daily SMA 200 and might breakout below the horizontal line. If bearish breakout and close below SMA 200 happen then the trend might switch to bearish again for the long term.