U.S. Stock Market Slips Ahead of U.S. Inflation Data

The stock market is trading lower in Tuesday’s trading session as traders brace for the release of U.S. inflation data tomorrow. It seems traders and investors are betting that inflation numbers will stay at a high level and decide to scale out of long positions for now. Trades will observe closely the release of inflation data tomorrow and the market reactions. As mentioned before, whenever a bearish correction happen, it is a big chance for traders to add long positions while preparing for the upcoming bull market.

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.

Oreilly Automotive Inc (ORLY)

ORLY share prices started a bearish correction after it reached the 1169.11 high. The bearish correction soon will reach the daily SMA 50 to test it. If there are bullish reactions after the test then traders could add long positions. However, if the bearish correction continues deeper then traders could wait near the level around the daily SMA 100 and $1,050 for a chance to enter long positions.