The U.S stock market climbed higher despite the strong job data

Strong U.S. employment job data is a strong catalyst for bullish movement but not for the stock market. However, after the release of U.S job data, it seems the U.S dollar index took a bearish turn and we see bullish reactions in the stock market. We could say the current movement is “priced in” and traders could expect the continuation of the bullish trend. 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)

DJIA index pushed lower aggressively yesterday and printed a bearish close below the daily SMA 50. However, it maintained a position above 38,500 and showed a bullish reaction today. The index will attempt to erase all of the losses and continue the bullish trend. However, traders will observe the index reactions near the daily SMA 50 and 38,500 support levels for now. Traders could continue accumulating long positions and use each bearish correction in the stock market as a chance to enter more long positions for now.

FeDex Corp (FDX)

FDX share prices launched upward after the latest earnings release. It closed the previous earnings gap and created another gap. At the current time, the share prices seem trading lower and might attempt to close the latest earnings gap. Traders could wait near the gap close level for bullish reactions. When the share prices could show major bullish reactions, traders could enter long positions.