Stock futures pointed upward in the hope to recover from yesterday’s bearish performance

The stock market set to open higher today as DJIA futures are currently up nearly 100 points. The decline of inflation in Europe become the fuel for the current upward pressure. If the U.S. reported lower-than-expected inflation numbers too then we will see upward pressure in the stock market. There is the release of FOMC minutes of the meeting today which will give clue on the Fed’s thoughts toward the inflation and interest rate. Aside from the minutes of the meeting, traders will focus on the job data at the end of this week.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index currently consolidating near the daily SMA 50 and inside the 32,500 – 33,250 area. The index will attempt to break out and continue the upward movement. There is no confirmation yet on where the index will move. If the index trade lower and close below the area and daily SMA 200 then we might see a new bearish trend. On the other hand, the upward movement followed by new higher highs is a confirmation of a bullish continuation.

Best Buy Co Inc (BBY)

BBY share prices mirror the DJIA index movement. It recovered above the daily SMA 200 and currently retesting the broken level. We might see the share prices continue consolidation near the averages while waiting for a trigger to continue the bullish movement. Traders will continue waiting on the sideline for reactions. Long positions could be taken with a tight stop below the daily SMA 100.