Stock futures trading positive near the zero level

U.S CPI data come out lower than expected which fuels a rally in the stock market. However, the bullish sentiment was immediately replaced by bearish sentiment after the release of the Fed FOMC minutes of the meeting. Fear of recession takes a grip on the market and might bring the stocks lower. Nevertheless, each bearish movement is a chance to enter long positions. Traders will wait for the stock market to make a bearish turn and enter at discount.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index’s upward movement stopped yesterday after the index make a bearish close. Although fundamental data supported the further upside, it seems traders start to scale out of positions following the release of the news. No change to the situation yet, the index will continue moving between the daily SMA 200 and the trendline and traders will continue to monitor the reactions between it.

Footlocker Inc (FL)

FL share prices look trading in a bullish trend. There was a bearish movement after the release of the latest earnings. But, the share prices could bounce from the daily SMA 200 and the bullish trendline. We think the share prices will continue the upward movement and traders could use the averages and the trendline to enter more long positions with a stop below the trendline. As long as a new higher high and higher low is printed, it is better to stay bullish.