U.S stock futures climb before the opening bell after softer inflation data

CPI data come out at 3% vs. 3.1% expectation which shows inflation numbers continue to cool. It will give more reason for the Fed to stop its rate-hike plan. Despite the bullish sentiment, traders might want to stay cautious as there are speeches by the Fed to watch. Also, traders will prepare for the interest-rate announcement in two weeks. We think the sentiment might turn neutral or sideway ahead of the meeting and traders will continue to use the chance to accumulate long positions on bearish corrections.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index continues the bullish movement after the bounce from the broken trendline. The index might continue the bullish trend and print a new higher high to confirm bullish continuation. However, if the index pushed lower and close below the trendline then a consolidation between daily SMA 200 and the trendline will happen.

Molson Coors Beverage Company Com (TAP)

TAP share prices are in a bullish trend and printing a new higher high also higher low. At the current time, the share prices undergo a bearish correction toward the daily SMA 50 and will attempt to form a higher low. Traders will use the chance to enter long positions when there are bullish reactions. We think the level between daily SMA 50 & 100 will become the place where a higher low is printed. Traders who enter long positions will place a stop level below the previous swing low or below the daily SMA 200.