Stock futures flat, all eye directed to inflation data

The U.S stock market might continue trading sideline before the release of U.S CPI data today. If inflation numbers continue to increase then the bearish pressure will continue to mount on the stock market. On the other hand, softer than expected inflation numbers could become a catalyst for short-term bullish movement.

After the inflation data, traders will focus on the Fed interest-rate decision this month. Expect no significant movement in the index until the FOMC meeting.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index pushed lower again yesterday as traders awaiting inflation data release today. The index overall movement is inside the two trendlines range. Without breakout and closing outside of the range, traders will assume that the index will continue moving inside the range. Traders will observe today’s price action to determine the next direction of the DJIA index. (We still think the index will resume the bearish trend)

Box Inc (BOX)

BOX share prices got rejected from the daily SMA 100 and closed below the daily SMA 200. We could see the share prices also experience rejection from a trendline. If the bearish pressure continues to mount then we might see a bearish continuation in share prices to target a new low.