Dow futures are up more than 100 points on the first trading day of 2023

Dow futures are mostly bullish to start a new year with optimism that the stock market will recover this year. Traders will start to return to the market and bring the stock market in new directions. We might see a rally in January trading month, however, traders will stay cautious about the Fed’s stance toward inflation. If the Fed continues to maintain a hard stance and decides to continue increasing interest-rate or tighten them further then we might see further downside in the stock market.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index broke above the trendline and started a bearish correction. The bearish correction managed to reach the trendline and the daily SMA 200. If the index could bounce from both levels then traders could expect a continuation of the bullish trend. On the other hand, if the index breakout lower and print a new lower low then traders will prepare for a bearish continuation. Traders might want to wait for further reactions while preparing to enter long positions with a stop below the cluster of averages.

Jabil Inc (JBL)

JBL share prices have returned to a bullish trend. The upward movement currently experience a bearish correction and managed to reach the daily SMA 50. If the share prices continue moving lower then the daily SMA 100 will become the bearish target to watch. Traders could prepare to enter long positions near the daily SMA 50 & 100 while expecting the continuation of the bullish trend. However, if the share prices close below the daily SMA 200 then the trend might turn bearish again.