Stock market ready to move lower after the holiday

DJIA futures pointed lower by more than 1% before the opening bell. The stock market is set to resume the bearish movement as traders and investors await more data on inflation. This month, the Fed is expected to raise the interest rate by 50-75 bps to battle the rising inflation. Based on the current commodities prices, we could see a pullback in the prices which might help to soften inflation numbers.

If the inflation slowed or come under control then we could see the stop of bearish movement in the stock market.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index managed to pull a bullish recovery at the end of the week. The index might continue trading inside the range with bearish pressure today as DJIA futures lower more than 300 points. We still think the bearish trend will continue as traders prepare for another rate hike by the Fed this month.

As long as the index continues printing lower lows and lower highs, traders will continue to stick with the bearish scenario.

Kroger Co Com (KR)

KR share prices bounced from the daily SMA 200 in the previous downturn. The share prices traded upward and reached the daily SMA 100 then resume the bearish movement. At the current time, the share prices continue trading near the daily SMA 200 with lower low and lower high printed on the chart.

If there is no higher high printed then we might eventually see a breakout below the SMA 200. A breakout below the daily SMA 200 will confirm a bearish continuation.