Stock futures open the week higher set to close September in a negative area

The bearish pressure on the stock market happened as expected in September. The situation is bearish because traders preparing for rate-hike by the Fed. There was no rate hike and the Fed might do it in November. Under the current situation, the stock market might trade in a choppy manner and traders will continue to use the opportunity to add more long positions.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index has reached the daily SMA 200 and there are no bullish reactions yet. The index might consolidate near the averages and wait for reactions. If the index could maintain the positions above the averages and bounce from it then the trend might turn bullish. On the other hand, a major bearish close below the daily SMA 200 could indicate more bearish pressure until the end of the year. Despite the situation, we maintain a bullish outlook and will continue accumulating long positions preparing for the upcoming bullish trend.

Eaton Corporation (ETN)

ETN share price bearish correction has reached the daily SMA 50 and might extend the bearish movement toward the daily SMA 100. At the current time, traders will wait until the bearish pressure subsides and there are bullish reactions. With a strong bullish reaction, traders could accumulate long positions between the averages. Meanwhile, traders might expect the share prices to continue lower to target the daily SMA 200.