U.S stock futures to recover after yesterday’s sell-off

The sell-off in the stock market happened yesterday as the inflation number came out higher than expected. The number confirms that the Fed will delay the interest-rate cut this March. At the current time, the stock market might continue trading lower and finding support to bounce from. Traders better await the chance to enter more long positions as the trend could turn bullish again when the inflation number cools or the Fed decides to cut interest rates.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index experienced a bearish pullback after the release of U.S. inflation data yesterday. A hotter-than-expected inflation number seems will put more pressure on the stock market for now. Despite the situation, it might be a temporary setback for the bull and traders will wait near support levels for a chance to enter more long positions. The area between 37,000 and 38,000 will become the focus of traders when the bearish pullback continues.

Shopify Inc (SHOP)

SHOP share prices are in a bullish trend and now we have a major bearish pullback. The bearish movement might continue to target the horizontal line or the daily SMA 100 & 200. Traders could observe the reactions near the support levels for bullish reactions. When there are bullish reactions, traders could enter more long positions targeting a new higher high. We think a swipe below the horizontal line might happen to clear the stop order of traders who bought the top.