Stock futures mixed as the rally halted

The stock market situation is mixed with a bearish tendency which will provide traders a better chance to add long positions at a lower level. This week, traders will focus on the release of inflation data tomorrow which could provide a high volatility situation. Will inflation turn higher again and bring the market further lower? Alternatively, will the inflation number continue to soften and give the Fed more reason to continue cutting interest-rate?

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index looks to turn lower after it reaches the Fibonacci Extension level. It seems a bearish correction is due and traders could expect a movement toward the previous swing low or the level around 43,000 – 43,500. Under the current situation, traders could take partial profit and prepare near the support level for bounce reactions. When there are bullish reactions, traders could enter long positions targeting a new higher swing high.

Texas Instruments Incorporated (TXN)

TXN share prices are under bearish pressure and trading near the daily SMA 200. The share prices showed initial bullish reactions but immediately lost its upward pressure yesterday. The share prices closed near the opening level at the end of the day. If the share prices could maintain the position above the daily SMA 200 and bounce with strong bullish momentum then the bullish trend could continue. On the other hand, if the share prices fall with a strong bearish momentum, the bearish trend could continue.