Stock futures are higher despite the record high cases of coronavirus
The stock futures are mostly higher before the market open which indicates further upside in the stock market. The bullish pressure continued yesterday and we might see a new record high in the stock market soon. Traders and investors are returning after the holiday and reenters the stock market after loss-harvest at the end of the year.
It seems the market ignoring the record cases in new coronavirus infections. We might see the stock market continue upward but traders might want to be careful ahead of the next inflation report or the Fed FOMC meeting.
Dow Jones Industrial Average (INDU)
The first trading day of 2022 resulted in a bullish close for the DJIA index. At the current time, the index futures also point upward more than 100 points which indicate further upside. If the bullish pressure continues to mount then traders will expect a new record high printed soon. The same strategy as yesterday, if the index makes a pullback then traders will wait near the daily SMA 50 for bounce reaction.
Lululemon Athletica (LULU)
LULU share prices are in a bearish pullback cycle and managed to reach the daily SMA 200. Initially, it managed to bounce from the averages but the upward pressure lost momentum. At the current time, the share prices will retest the averages. If LULU could maintain the position above the average and bounce from it then a double bottom pattern will be formed and traders could add long positions.