Stock futures slightly lower ahead of inflation data release

The stock market might open lower today as DJIA futures are lower than 89 points at the current time. It seems traders are taking part of their profits before the release of U.S. inflation data. If inflation numbers continue to creep higher then we might see a bearish pullback in the stock market for the short-term. Traders could continue to use each bearish correction in the stock market for a chance to add more long positions this year. When the Fed decides to lower interest rates, we might see a full-blown bullish trend.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index made two bearish close on the daily chart which could mean a bearish correction is due. When the index starts a bearish correction, traders will wait near the support level for bullish reactions. A successful bounce from the support level will confirm a bullish continuation and open a chance for traders to add long positions. The level around 38,000 – 38,500 will become the focus of traders when a bearish correction happens.

Intel Corp (INTC)

INTC share prices are trading lower at the daily SMA 100 right now. It might break out lower to continue the bearish movement toward the daily SMA 200. Traders will observe the share price reactions near the daily SMA 100 & 200. When there are bullish reactions, traders could enter long positions targeting a new higher high. Closing the earnings gap might be the movement that traders could expect for now.