Wallstreet set to drop as potential war tension intensified

The bearish situation of the stock market seems will continue this week as traders focus on the Ukraine tension. There is a high probability war will break out as Russia invades Ukraine this week. Aside from the tension, traders also weigh on the hotter than expected inflation number released last week.

There is no reason to become positive for now. Traders will continue to monitor the situation and act cautiously for now.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index is not in a good position as the index closed below the daily SMA 200 last week. The bearish pressure might continue to build up as lower low and lower high printed on the chart. On the upside, the index needs to climb above the previous week’s high to cancel the current bearish outlook.

United Parcell Service Inc (UPS)

UPS share prices managed to break out and trade higher. At the current time, the share prices undergo a bearish correction and are expected to continue lower to target the daily SMA 200 also trendline. Traders will observe the share prices reaction near both support levels. Long positions could be taken when there is major bullish reaction.