The stock market continues mixed movement

The U.S. stock market is trading mixed again today with the DJIA index trading lower but the S&P500 & Nasdaq trading upward. Traders are focusing on Powell’s testimony which could hint at a rate cut. Currently, traders will wait for further reactions from the market. It is projected a rate cut will happen in September after the latest data. If inflation numbers continue falling, it will put more pressure on the Fed to start a rate cut sooner.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index turned lower today after the previous day’s bearish close. The index seems to attempt to move lower and retest the daily SMA 100. Will the index maintain the bullish pressure and continue the upward movement to print a new higher swing high? Alternatively, will it start a new bearish leg to target the level below 38,000?

Home Depot Inc (HD)

HD share prices are trading between the daily SMA 100 & 200. It also formed a possible “W” pattern which could become a bullish reversal indication. On the upside, the share prices need to break out and close above the daily SMA 100 to confirm the pattern. Meanwhile, further weakness below the daily SMA 200 and a new lower low will confirm a bearish continuation.