Stock futures pointing lower, indicating the resumption of the bearish trend

The stock futures are mostly under pressure today after the previous day bullish bounce. Weak sentiment continues to cloud the market, especially on rising inflation. Traders will focus on new home sales data and a speech by Jerome Powell today. On Wednesday, there is release of the FOMC minutes of the meeting which might further confirm rising inflation and urgency to raise interest-rate quicker.

Technical Analysis

Dow Jones Industrial Average (INDU)

A bullish recovery movement happened in the DJIA index yesterday. The upward movement has strong momentum but might be short-lived. At the current time, the DJIA future is lower by 178 points. If the index starts moving lower again then the bearish trend is set to continue. On the upside, we think the current bullish correction might reach as high as 32,500 – 33,000 maximum.

Automatic Data Processing Inc (ADP)

ADP share prices bounced from the level around $210.00. It is currently moving upward and might reach the cluster of daily averages. Traders will observe the reaction near the averages for bearish reaction. Traders might want to scale out of long positions when bearish rejection happens. On the other hand, short positions are also a choice traders could take.