U.S stock market rebounding after the previous week’s loss

The stock market turn positive at the beginning of this week as traders prepare for the release of inflation data and the second quarter’s earnings results. Last week non-farm data show a lower number than expected which fuels bullish sentiment. However, there is no confirmation yet that the Fed will stop its hike this month. The release of inflation data and series of second-quarter earnings results will influence the Fed decision this month. If a rate-hike happen again then the stock market will come under bearish pressure. Nevertheless, traders will continue use each bearish correction as chance to add more long positions in stocks.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index reached the broken trendline and there is a bullish reaction in today’s trading session. Not a strong bullish reaction but might be a good start for bullish continuation. Traders will continue to accumulate long positions in stocks while expecting the index to continue the bullish trend. Meanwhile, a close below the trendline might trigger consolidation between the trendline and the daily SMA 200.

Rivian Automotive (RIVN)

RIVN share prices made a bullish breakout above the daily SMA 200 which means the trend has changed from bearish to bullish. Right now, traders will wait for the share prices to make a bearish correction toward the broken averages. When the share prices retest the level and show strong bounce reactions, traders could enter long positions. As we might be at the beginning of the bull market, traders could continue to hold the positions as long as the share prices continue printing a new higher high and higher low.