Stock market set to trade lower on higher than expected PPI data

PPI data come out at 0.3% vs. 0.2% expectation while core PPI rise 0.4% vs. 0.2% expectation. Traders will brace for bearish pressure today as DJIA reacted bearishly with 150 points drop. If the bearish pressure continues to increase then we might see a bearish continuation in the coming week, anticipating the fed FOMC meeting.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index reverses the bearish pressure and avoids further weakness toward the trendline and daily SMA 200. However, the index might resume the bearish movement today after higher than expected wholesale inflation report. If the index trade lowers then it will test the trendline and daily SMA 200.

Traders will observe the index reactions near the levels to determine the next direction.

Lowe’s Companies Inc (LOW)

LOW share prices managed to break out above the daily SMA 200 and add more bullish gain. At the current time, the share prices undergo bearish correction and reached the daily SMA 200. If the share prices could maintain the position above the averages and bounce from it then we could see a bullish continuation to retest the level around $215.00