Stock futures under pressure, indicating more bearish movement

The stock futures are currently trading lower and set to continue the previous day’s bearish movement. No bullish catalyst to lead a bounce in the stock market. Under the current situation, it is better to stick with a bearish scenario and wait until the bearish pressure recedes near support levels.

Meanwhile, the inflation rate continues to increase in Europe. The inflation data come out at 8.6% vs. 8.4% expectation. It means the bearish pressure in the stock market is expected to continue for now.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index pushed lower yesterday but managed to recover most of the losses. However, the index is expected to continue moving under bearish pressure as the DJIA futures are currently lower by 110 points. There is no change to the bearish outlook until the index prints a higher swing high on the daily chart.

Chevron Corporation (CVX)

CVX share prices currently undergo a bearish movement and almost reached the daily SMA 200. The share prices traded upward to the $150.00 handle where it act as a support level previously. If the share prices continue the downward movement with strong bearish momentum then we will see a test on the daily SMA 200 soon.