Stock market slightly lower on Friday trading

Yesterday’s inflation data release showed higher-than-expected numbers which hinder the upside in the stock market. Today, the major indices show bearish signs but no major movement yet. It seems a correction could happen anytime and traders will prepare to add long positions when it happens. At the current time, traders who have long-term long positions could continue to hold it. Earnings season might become the bullish sign traders await this year for the bull market.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index hanging near the top and no major bearish movement yet. The index might attempt to continue the bullish movement and print more higher highs. No change to the situation, traders will wait for the index to start a bearish correction for a chance to add long positions in stocks near support levels. It is better to avoid shorting at the current time as the overall trend is bullish.

Yelp Inc (YELP)

YELP share prices are in a bearish correction phase and it managed to reach the daily SMA 100. If the share prices could maintain their positions near the averages then a bounce might happen. Traders will use the daily SMA 100 & 200 as places to add long positions when bullish reactions happen. At the current time, it is better to observe the share price reactions before entering positions.