Stock market advanced as inflation cools

DJIA index is up more than 200 points after the release of inflation data which came out lower than expectation. Lower inflation numbers put optimism on the stock market. It is more apparent that the Fed will start cutting interest rates sooner in September or October. As mentioned before, traders will continue to use each bearish correction in the stock market as a chance to accumulate long positions.

Technical Analysis

Dow Jones Industrial Average (INDU)

The DJIA index continues gaining on the daily chart after the bounce from the daily SMA 100. On the upside, it will attempt to print a new record high to confirm the bullish continuation. We could say the recent consecutive bullish movement indicates the start of a new bullish leg. However, if the index turns lower again and prints a new lower swing low then the trend could turn bearish.

Coinbase Global, Inc (COIN)

COIN share prices are undergoing a bearish correction and managed to reach the daily SMA 200. It is currently attempting to maintain the positions near the averages and looking for a bounce from it. If the share prices could continue the bounce and recover most of the bearish move happened recently, then the trend could turn bullish. On the other hand, further bearish pressure and a new lower swing low will confirm the continuation of the bearish move.