U.S stock futures under bearish pressure after recession warning

U.S CPI numbers show further lower numbers which suggest inflation numbers will continue moving lower. However, the good news only lasts for a while as the market refocuses its attention on the possibility of recession this year. JP Morgan reported an EPS of $3.57 vs. the $3.07 estimate. Revenue comes out at $35.57 billion vs. the $34.3 billion estimate. Despite the strong performance, the bank also mentioned that recession now is a central case. At the current time, DJIA futures are lower by more than 250 points which suggests a pullback before the end of the week.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index continues moving upward as the U.S. CPI number shows a further drop in inflation. If the index could extend the bullish movement and print a new higher high then traders will expect the continuation of the bullish trend. However, if the index turns lower again and makes a close below the daily SMA 200 then the trend will turn bearish again.

Taiwan Semiconductor (TSM)

TSM share prices break out above the daily SMA 200 which could signal a trend change. If the share prices could maintain a position above the averages then traders could expect a bullish continuation. A test on the daily SMA 200 will provide traders with the chance to enter more long positions. However, if a bearish breakout with strong momentum happens then the trend could switch again from bullish to bearish.