U.S stock market higher before inflation data release

The stock market is trading higher this week on the prospect that the government shutdown ended. Last week setback by bank sector also being shrugged as traders prepare for the upcoming FOMC meeting. Nothing changed to the bullish outlook of the stock market as we are nearing another rate-cut. Traders will continue to use each bearish correction in the stock market as a chance to add long positions.

Dow Jones Industrial Average (INDU)

DJIA index has recovered entirely from the latest drop and is set to continue upward and target a new higher swing high. The index need to print new higher swing high to continue the bullish trend. Otherwise, a bearish reversal and new lower swing low will cancel the bullish outlook. Will we reach 50,000 in the current bullish cycle?

The Travelers Companies (TRV)

TRV share prices experience major bearish correction and fall below the bullish trend line. It is currently trading near the daily SMA 200 and fortunately no new lower swing low printed. If the share prices could maintain the position and immediately bounce upward, then the bullish trend preserved. Otherwise, if the share prices continue lower, print new lower swing low, then the trend will turn bearish.