Stock futures near flat level ahead of inflation data

Last week, U.S. job data came out higher than expected which put some pressure on the stock market. This week, traders will focus on the release of inflation data which will give more outlook on this year’s situation. If inflation numbers continue to cool then the Fed will start to shift to rate-cut which will boost the stock market. Traders will use each bearish movement in the stock market as a chance to enter more long positions at a lower level.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index not starting any bearish pullback as the market continues optimistic that the trend will continue bullish this year. It seems the bullish trend will just continue and disregard all bearish signs for now. Nevertheless, traders better awaiting for a bearish pullback for a chance to add long positions at a lower level.

Home Depot (HD) – Update

In the previous analysis, HD share prices look will start a bearish correction. It did and the share prices currently trading near the daily SMA 200. We could see the bullish trend has not broken yet and traders will observe the reactions near the averages and the trendline. When there are bullish reactions, traders could enter long positions with a stop below the previous swing low.