The stock market is under bearish pressure following rising tension between U.S-China

The stock market situation looks bearish today as U.S-China tension increased following the expected visit by Pelosi to Taiwan. DJIA futures are lower by 182 points and might add more bearish pressure after the opening bell. Traders are waiting for the release of earnings results from Paypal, and Starbucks.

Meanwhile, analysts expect inflation to peak up as commodities prices start to pull back.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index is trading inside our bullish correction target area. The index will attempt to move upward but we think it will get rejected from the area and resume the bearish movement. Traders will monitor closely the index reaction near the area for now. A new higher high and a close above the daily SMA 200 will cancel the current bearish outlook.

First Energy Corp (FE)

FE share prices bullish correction continues as expected. The share prices have moved upward since our previous analysis. At the current time, the share prices have reached the daily SMA 200 and will test it. If a significant bearish reaction happens then traders will prepare for a bearish test on the level around $40.00. A close above the daily SMA 200 will become bullish confirmation.