Stock futures traded lower as the market digest China’s data

China’s economy grew by 8.1% last year, slightly below the 8.4% expectation. Analysts have expected weak data as the Omicron variant spread globally. European stock market open higher today following the data release. It seems the market will continue waiting sideline, for now, observing the covid development and the economic data releases to get the picture on the interest-rate decision.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index closed near the daily SMA 50 and might continue trading near it this week. The index is supported by the daily SMA 50 and will attempt to bounce from it again. However, if the index continues moving lower then there is daily SMA 100 & 200 which will become a major support level to watch.

At the current time, DJIA futures are lower 29 points which indicate a mild bearish sentiment.

Macy’s Inc (M)

M share prices are in a bearish correction phase after $37.95 top. The share prices are supported by the daily SMA 100 and consolidated between the SMA 50 & 100. Traders will wait for a breakout from the consolidation area to confirm the next direction. If the share prices continue the bearish correction then daily SMA 200 is the place to look for long positions.