U.S stock market moving sideway ahead of key inflation data

The recent employment data show stronger-than-expected numbers which put bearish pressure on the stock market. However, traders seem buying into the dip and looking for further confirmation that the Fed will cut interest-rate. Major indices mostly trading sideway today as traders are waiting for the release of key inflation data this week. If inflation numbers stay at a high level then we might see a further bearish correction in the stock market. Nevertheless, traders could continue use each bearish correction in the stock market as chance to add more long positions.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index returns above the daily SMA 50 and currently sticks near it. No bullish continuation yet but the index might continue trading sideline near the daily SMA 50 while waiting for the catalyst to move upward. If the index continues moving lower then the area between 37,750 – 38,000 could become the place to look for bounce reactions. On the lower side, 37,000 might be the key level to flip the bullish trend to a bearish trend.

Foot Locker Inc (FL)

FL share prices recently returned above the daily SMA 200 but underwent another bearish pressure. In the previous bearish attempt, it managed to bounce from the bullish trendline. At the current time, the share prices are trading near the trendline again, and will test it. Traders could use the chance to add long positions with a stop below the previous swing low. When the share prices break out and close above the daily SMA 200, the bullish trend could continue.