Stock futures rebound after bearish closes but might turn lower again

U.S stock futures pointed upward at the current time with DJIA futures up 100 points. Despite the bullish rebound, we might see the index resume the bearish movement as more reports come from Europe regarding rising inflation. UK reported the highest inflation since 30-years ago which topped 7%.

Aside from the inflation data, traders will focus on the kick-off earnings season today. The earnings season might become the barometer to gauge how companies fare in a rising inflation environment.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA continues under bearish pressure especially after yesterday’s inflation data show another increase. The index made another bearish close below the daily SMA 50 and will attempt to breakout below the previous week’s low. No reason to turn bullish on the index as long as the index stays below the daily SMA 200.

Expedia Group Inc (EXPE)

EXPE share prices trend slowly turned bullish after another higher swing low printed on the chart. The share prices currently trade near the daily SMA 50 and might continue lower to test the daily SMA 200 and trendline. Traders will observe the share prices reaction near both support levels. If there is a bullish reaction then traders could enter long positions.