U.S Stock market rises ahead of key inflation data

There were strong indications that inflation numbers will continue decreasing as unemployment data show a rising trend. Tomorrow, traders will monitor the release of key inflation data which might alter the market direction. If the inflation numbers continue to fall, we will see further upside in the stock market. However, a bearish reversal could happen too after the news release as the S&P500 has been trading upward for seven days. A bearish reaction and another bullish bounce after the news could be a scenario traders wait for.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index looks to move slightly higher in today’s trading session. The index is attempting to resume the bullish trend to target a new higher swing high above the 40,000 handle. No change to the bullish situation, at the current time, the index looks to consolidate for several weeks. If the index turns lower again, traders could wait near the daily SMA 100 or 38,000 handle for bullish reactions.

Caterpillar Inc (CAT)

CAT share prices are currently trading near the 38.2% Fibonacci Retracement level. It might continue moving lower to target the daily SMA 200 and the 50% Fibonacci Retracement level. Traders will wait near the lower support level for a chance to add long positions in the shares. However, if there is a close below the daily SMA 200 then we might see a change in the trend from bullish to bearish.