U.S stock market set to bounce after two days close below 30,000

DJIA futures are currently up more than 300 points which indicates a bullish recovery at the opening of the trading day. DJIA index might target the 30,000 handles and test it. We think the current bullish movement is a correction movement only before further downside. Traders will continue to stay cautious and observe the index movement near the 30,000 handles.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index continues the bearish movement below the 30,000 handles. The bearish movement seems will continue until it reaches the 28,000 – 29,000 area. Traders will observe the index reactions near the area, if the index could bounce with strong bullish reactions and maintain the positions above the area then there is a chance of consolidation near it.

When the consolidation is complete, there is a chance to enter long positions for the new bullish leg.

Waste Management Inc (WM)

WM share prices started a bearish correction and will target the daily SMA 100 also 200. Traders will wait until the bearish correction is completed and there are bullish reactions near the support levels. When there is a bullish reaction, traders could enter long positions with a new higher high as the target.