U.S stock futures were higher before the opening bell

The stock market is set to open higher, continuing yesterday’s bullish gain. The upward pressure of the stock market comes as the inflation numbers are lower than expected. It is widely accepted that the Fed might unwind on its rate-hike policy. Nevertheless, traders will continue to apply an accumulation strategy while the stock market making a bearish movement. We think the bullish market will happen in 1-2 years and this is the best time to start accumulating positions.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA continues the bullish movement after the bounce from the trendline. The index attempted to print a new higher high and form a bearish pin bar pattern yesterday. If the index starts moving lower again then we will have an evening start pattern which could bring the index down to retest the trendline. In the long term, the index trend is bullish and traders might want to continue adding more long positions in stocks when a bearish correction happens.

Micron Technology (MU)

MU share prices are in a bullish trend and currently, the share prices undergo a bearish correction. It is trading near a cluster of averages and will wait for further reactions. if the share prices could bounce upward and build strong bullish momentum then it will target a new higher high. On the other hand, if the share prices reverse the direction and close below the daily SMA 200 then we might see a bearish continuation.

Trip Advisor Inc (TRIP)

TRIP share prices moving upward and currently trading near the daily SMA 100. If the upward movement could continue then it will attempt to break out above the daily SMA 100 and target the daily SMA 200. A bearish rejection might happen and bring the share prices lower. However, there is horizontal line traders could watch as a support level. A breakout and close above the daily SMA 200 will overturn the current trend.