U.S stock was slightly higher before the release of U.S inflation data

Traders and investors are heavily focused on the release of U.S. CPI data today. The current expectation sees y/y CPI come out at 6.5% or down 0.6% compared to the previous month. If the CPI number comes lower than the expectation then we will see a rally in the stock market. Aside from the CPI data, the market will focus on the earnings releases from Coca-Cola (KO), Airbnb (ABNB), and Restaurant Brands International (QSR). It is better to wait until the release of the inflation data before deciding to enter more positions.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index stuck near the top trendline before the release of U.S inflation data. Traders seem betting that a bullish breakout will happen after the release of inflation data. At the current time, the index continues trading between the daily SMA 200 and the top trendline. A breakout and close above the trendline will become confirmation for traders who already hold long positions in stocks.

Rocket Companies Inc (RKT)

RKT share prices broke above the daily SMA 200 recently and continue upward to test the previous swing high. The share prices then undergo bearish correction toward the daily SMA 200 and currently testing it. If the share prices could maintain the position near the averages and bounce from it then traders will expect an upward continuation to retest the previous swing high. We think this is a chance for traders to enter long positions with stops below the cluster of averages. If the share prices could print higher swing high then the positions could be held for a longer time.