Stock futures were flat at the end of the week

The U.S. stock futures are trading near the opening level, slightly lower but ready to end the week on a bullish note. This week’s gain was mostly incited by the release of inflation data which show a decreasing trend. It is more apparent that the Fed will start cutting interest rates earlier and the market will continue its upward movement. However, traders could be prepared to buy the rumor and sell the news event. We might see further bullish continuation before the FOMC meeting and a sudden sell-off after the meeting. Despite the situation, in the long term, the bullish trend could continue as long as the rate cut continues in the coming year.

Technical Analysis

Dow Jones Industrial Average (INDU)

The DJIA index continued its gain for the third day and got near the record high. The index might be able to print new record highs as inflation numbers continue to decrease. Technically, the index also printed a new higher swing low in the previous bearish attempt. There’s not much traders could do aside from wait for the index to print a new record high and then start a bearish correction. When the index is near the support level, traders could add more long positions in stocks.

Tencent Music Entertainment Group (TME)

TME share prices dropped sharply and erased 50% of its gain since 1 year ago. The share prices are near the daily SMA 200 and 50% Fibonacci Retracement levels where traders could wait for buying opportunities. If the share prices could move upward with strong bullish momentum then the trend might turn bullish again to close the recent earnings gap.