U.S stock futures steady ahead of this week inflation data

The stock market has been trading sideways since the beginning of February. The situation might continue until the release of U.S. inflation data this week. At the current time, the DJIA futures are trading down 10 points and might continue trading near the opening level. Traders might want to continue to stay sideline until the release of U.S. inflation data this week.

If inflation data continue to move down then traders will expect a bullish continuation in the stock market.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index continues trading between the trendline and the daily SMA 50 nearing the release of U.S CPI data. A reaction will happen, either a bearish rejection or a bullish breakout above the trendline. Traders will wait for a major bearish close or bullish close above the trendline to confirm the next direction.

International Business Machine (IBM)

IBM share prices fell below the daily SMA 200 but continue trading sideway below it. The share prices might continue consolidating and waiting for further reactions. If the share prices could move upward with strong bullish momentum then we might see the start of a new bullish leg. On the other hand, if the price continues moving lower then traders will expect a bearish continuation.