Stock futures climb after worst week of the year

The stock market is set to make recovery this week after the previous week’s major setback. The bearish pressure happened after the inflation number show persistent upward pressure despite the Fed’s action. It could translate into more tightening in the future. Traders will stay careful this week as the upward movement could be a temporary movement before further downside.

We think the long-term bullish leg will happen this year and each bearish attempt in the market is a chance for traders to enter long positions at a lower level.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index bearish movement almost reaches the daily SMA 200 where it is expected to find support and bounce. At the current time, DJIA futures are up 145 points which suggest a bullish bounce might happen today. If the index moves further lower then traders will wait for reactions near the daily SMA 200. A successful bullish bounce with strong momentum will confirm a chance to rally toward the top trendline.

Roblox Corp Com (RBLX)

RBLX share prices make a bullish gap after the release of earnings results. The upward gap currently undergoes bearish movement to close the gap. Traders could use the moment for a chance to enter long positions near the gap close level or near the daily SMA 200. A stop order could be placed below the previous swing low.