Stock futures flat after previous week bullish recovery

The pressure on U.S stock major indices subsides last week and the index managed to stage recovery. Last week’s job data helped the recovery, however, traders will focus on inflation data this week. Hotter than expected inflation numbers might trigger pressure on the stock market.

At the current time, the stock futures are trading flat, slightly lower. We might see range trading until the release of inflation data this week.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index settled between the daily SMA 50 & 200. The index has returned above SMA 200 after falling below it. It seems the index will consolidate between the averages while traders wait for this week’s inflation data. Will the index continue the bullish trend and target a new all-time high? Alternatively, will it start a bearish trend below the daily SMA 200?

Paypal Holdings Inc (PYPL)

The bearish pressure on the PYPL share prices seems a little bit “overdone” by the market. It falls below the weekly SMA 200 and currently trading at 2019 high. This could be a major discount but the share prices can continue lower before the bearish momentum subside. Traders will wait for the bearish momentum to receive and start entering long positions.