Stock futures under bearish pressure after Wednesday’s rally

The stock market might open the day on the lower side as DJIA futures are currently lower by more than 200 points. Yesterday, the stock market broadly higher after UK BOE decide to intervene in the bond market as Pound Sterling falls against the U.S dollar to record lows. Will the intervention turn into a bullish rally in the market? traders better monitor the situation for now.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index printed a bullish close yesterday after a long overdue bearish movement. The index might start a new bullish movement and target the 30,000 and 30,500 – 31,250 area. Based on the saying “September is the worst month for stock and October is one of the best months for bull” then this could be a chance for the stock market to start a bullish reversal from the current level.

However, traders might want to plan ahead for the next Fed rate-hike though.

Union Pacific Corp (UNP)

UNP share prices on the weekly chart touched the weekly SMA 200. There is a bullish reaction and the share prices might close the week on the bullish side. If the bullish pressure continue to build up then we might see a rally in the share prices in the coming weeks. On the upside, the daily SMA 100 will become the upward target.