S&P500 & Nasdaq fall as traders rotate out of the tech sector

The U.S. stock market experienced buying pressure after the release of U.S. CPI data which shows a declining trend. The data is evidence for the Fed to start a rate cut in September. At the current time, the DJIA index is trading upward but both the S&P500 and Nasdaq are under bearish pressure. Tech shares take a beating but maintain strong performance this year. Traders could use the chance to screen for other sectors which has performed badly this year to acquire stocks at a discount.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index continues the bullish movement and soon will test the previous swing high. The bullish movement of the index is fuelled by the latest CPI data release which shows a decreasing rate of inflation. We might see a test of swing high soon and possible short-term bearish reactions. If the index could print a new higher swing high then the bullish trend could continue. On the other hand, if the index starts another bearish movement then traders could wait near the support level for bullish reactions.

Hut 8 Corp (HUT)

HUT share prices seem to have broken above the bearish trendline and initially confirmed a trend reversal. If the share prices turn lower then it might test the broken trendline and the horizontal flip level. Traders could wait near both levels for bullish reactions and a chance to enter long positions. On the upside, when the share prices print a new higher swing high then it will confirm the continuation of the bullish trend.