US Stock Market Technical Analysis | August 12, 2022

Stock futures gains on the inflation-peaking optimism

Inflation numbers cool more than expected which trigger optimism across the market. DJIA index continues building bullish pressure and is set to tip the scale to a bullish trend again. However, the underlying situation has not changed yet. Inflation continues to stay at a high level and an upward bounce could make the situation ugly for the bull.

Nevertheless, traders will focus on the Fed decision next month. We might see the Fed continue rising the interest rate to match the inflation rate which means no stop to the rate increase yet.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index climbs above the horizontal area and prints a higher high. We could regard the current event as bullish and a continuation toward daily SMA 200 might happen. However, the index also printed a bearish candlestick pattern yesterday. A close inside the horizontal range is not a good sign for the bull. On the other hand, a close above the daily SMA 200 is a major bullish confirmation.

Interactive Brokers Group Inc (IBKR)

IBKR share prices printed a higher high on the daily chart but have not climbed above the daily SMA 200. The upward movement might continue to test the daily SMA 200. We might see a bearish rejection from the averages and downward movement to test the horizontal level around $62.00.

Traders will monitor the reactions between the daily SMA 200 and $62.00. If the bearish pressure continues to build up then a bearish continuation will happen. On the other hand, a close above the daily SMA 200 is a bullish confirmation.

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