U.S stock jumped to recover from Friday’s sell-off

The bearish pressure on the stock market has reversed today, following bullish pressure before the market open. DJIA index futures are up more than 300 points. Traders are anticipating the release of earnings report from NVDA this Wednesday. The major downturn in the AI stock after China’s DeepSeek launch might give pressure to the NVDA results. This Wednesday we will get better view on the impact and the influence to the stock market.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index continue moving lower and reached the daily SMA 100. It will test the averages and looking for bounce from it. If the index bounce higher, then traders could expect continuation to print new record high. However, if the index continues the bearish movement, then the daily SMA 200 will become the next bearish target to watch.

Home Depot, Inc (HD)

HD share prices looks developing a shoulder-head-shoulder pattern which is a bearish reversal pattern. The share prices are currently trading near the bottom of the pattern where a breakout might happen. If bearish breakout happen, then HD share prices will enter bearish trend. On the other hand, as long as the pattern not confirmed, traders could assume the bullish trend could continue.