DJIA futures start the week under pressure as recession risk loom

DJIA futures are currently lower by more than 100 points which indicates bearish pressure at the start of trading. Traders will focus on this week’s inflation data after the previous week’s job data was not far from expectation. Stronger job data means the Fed might maintain the plan for rate-hike. If the inflation numbers cool this week then there is a chance of a rally in the stock market.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index is trading between the daily SMA 200 and the top trendline. There is more room for the upside and traders will continue to monitor the index reactions. If the DJIA index could break out and close above the trendline then the bullish trend could continue. Aside from the breakout, the index needs to print a new higher high to confirm the bullish breakout.

Target Corp (TGT)

TGT share prices have climbed above the daily SMA 200 and might start a new bullish trend. However, since the breakout and close above the averages, there is no bullish continuation yet. At the current time, traders will continue to monitor the share price reactions near the daily SMA 200.