U.S stock market steady before the weekly close

This week has been a bearish week initially after the release of U.S inflation data which came out higher than expected. However, the market shook off the bearish situation and brought the U.S. stock indices further upward. At the current time, most of the indices trading flat not far from the opening level but are set to close the week with a gain. This year is a bullish year which means traders will continue to avoid short positions and wait for a bearish pullback in the stock market to enter more long positions.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index setback after the inflation data release does not continue. The index reversed the bearish movement and erased all of its losses before the end of the week. It seems the bull will just continue the bullish movement and print a new record high. No change to strategy traders could take, traders will continue to use each bearish correction in the index as a chance to enter more long positions near support levels.

Analog Devices Inc (ADI)

ADI share prices make a bearish retracement toward the daily SMA 200 and it shows a bounce reaction. The share prices look trading upward and currently testing the daily SMA 50. It might range between the daily SMA 50 & 200 for now. Traders could use the chance to accumulate long positions with a stop below the previous swing low or $180.00. A breakout above the daily SMA 50 will confirm the continuation of the bullish movement.