Stock futures pointed upward, looking to continue last week’s gain

The U.S. stock market is mostly higher today after a comeback stage. The situation might be bullish but it could turn bearish anytime as traders wait for the release of inflation data this week. We have a signal that the Fed will start cutting interest rates as the economy decelerates. However, if inflation numbers start moving upward again then it could spell more worry in the market as recession might be not far.

Technical Analysis

Dow Jones Industrial Average (INDU)

The DJIA index bounced from the daily SMA 100 as it closed above the averages after slight bearish pressure below it. The index futures currently trading higher and signal a bullish continuation. If the index could continue the upward movement with strong momentum then the bullish movement could target a new record high. Currently, traders will monitor the index reaction near the 40,000 handle. Failure to trade above 40,000 might reverse the current upward movement.

Lowe’s Companies (LOW)

LOW share prices printed a higher swing high in the latest bullish attempt and look to consolidate above the daily SMA 100. The share prices moving above the daily SMA 100 and will attempt to bounce from it. Traders will assume that the share prices will print a higher swing low around daily SMA 100 & 200. So long positions could be taken near both levels with a stop below the latest swing low.