U.S. stock market recover after CPI data dump

The bearish pressure on the stock market happened today after the release of CPI data. The data show hotter than expected inflation numbers, which spook the market. We have DJIA dump more than 400 points, but currently it managed to recover and lower 150 points for the day. Despite the recovery, we might see another bearish downturn in the stock market as inflation number rising.

Traders will continue to stay cautious for now and waiting for more data to confirm the next direction of the stock market.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index trading lower at the beginning of day after inflation data release. However, the bearish pressure has subsided and the index currently trading above the opening level. If the index could maintain the bullish pressure and close higher for the day, then there is chance of bullish continuation to target record high. As mentioned before, if the index started another bearish correction, then traders could use it as a chance to add long positions at a lower level.

International Paper Company (IP)

IP share prices are in an uptrend and always supported by the daily SMA 100. Recently, the share prices printed a double top pattern and fall toward the daily SMA 100 again. Traders could use the averages as a place to enter long positions. However, as a double top pattern formed. If bearish breakout happen and confirmed the pattern, then the trend might turn bearish.