U.S stock market continues the rally to a new record high

The stock market is in a bullish mode and it is better to stick with the current until a bearish reversal happens. There’s not much to do aside from riding the current bullish movement and waiting for a chance to add more long positions at a lower level. Previous week’s speech by Jerome Powell has been a confirmation that the Fed will start cutting interest-rate next month. If the Fed decides to do the opposite then we might see a major bearish movement in the stock market.

Technical Analysis

Dow Jones Industrial Average (INDU)

The DJIA index is mostly bullish and currently challenging the record high. There is no stop to the bullish trend in the index and traders are better waiting for a bearish correction to add more long stock positions. Next month, the Fed is expected to start cutting interest-rate which suggests the current bullish movement. When the actual event happens we might see a “sell the news” event. Nevertheless, it will allow traders to add more long positions at a lower level.

Soundhound AI, Inc (SOUN)

SOUN share prices look undergoing a consolidation after a bearish retracement. The share prices currently trade near the previous broken swing high or the flip level. We might see further sideways movement with bullish bias. We think the share prices could continue the bullish movement inside the channel. However, if the channel breaks to the downside then traders might want to turn bearish on the share prices.