Stock futures flat ahead of inflation data

The CPI data show lower-than-expected numbers which could boost the stock market. However, the bullish pressure in yesterday’s trading reversed, and the index traded back below the opening level. At the current time, traders will await the release of U.S. PPI data and the University of Michigan Consumer Sentiment Index. Despite the situation, we think traders could continue to accumulate long positions when a bearish movement happens.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index failed to extend the bullish movement yesterday and made a bearish close. The market situation will depend on the release of U.S. job data today. If the index continues trading lower toward the horizontal line around 34,500 then traders could use the chance to add more long positions when there are bullish reactions. Traders will continue to use each bearish correction as a chance to add more long positions anticipating the next bullish trend.

Ralph Lauren Corp (RL)

RL share prices are in a bullish trend and currently, it undergoes a bearish correction. Traders could wait until the share prices lose the bearish pressure and show bounce reactions from the cluster of averages. When the share prices lost the bearish pressure then traders could enter long positions. On the lower side, there is a bullish trendline to watch too.