Stock market set to open lower after yesterday drop

The hotter than expected inflation number triggered a sell-off in the U.S stock market yesterday. Traders and investors weighing on the possibility of aggressive tapering. Moreover, the conflict in Russia also brings a lot of uncertainties to the market. Today, we might see a bearish follow-up of yesterday’s drop.

Traders might want to stay cautious for now and wait for further clues before deciding on long-term positions.

Technical Analysis

Dow Jones Industrial Average (INDU)

The situation of the DJIA index continues sideways with the index trading between the daily SMA 50 & 200. Traders will wait for a breakout and close outside of the range to get confirmation on the next direction. At the current time, DJIA futures are trading down 39 points which indicates slightly limited weakness inside the range.

YUM brands Inc (YUM)

YUM share prices broke below the daily SMA 200 and managed to find support at the horizontal line. The upward movement tested the daily SMA 200 but the share prices could not make a clean breakout. If the share prices continue moving lower then traders will prepare for a bearish continuation.