U.S stock futures were positive at the last day of the month

The stock market is set to close the month on a positive note after a strong rally this week. Traders and investors seem to shrug off the bad data which signals recession. Moreover, The Fed and president Joe Biden also avoid admitting we are in recession despite the consecutive negative GDP numbers.

Traders might want to stay cautious as the current bullish movement might be a temporary movement before further weakness.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index has reached the bullish correction target area. The real test is now if the index gets rejected with a strong bearish reaction then the bearish trend is set to continue. On the other hand, further strength above the level and close above the daily SMA 200 might signal a change of the bearish trend to the bullish trend.

Chipotle Mexican Grill Com (CMG)

CMG share prices made a strong bullish gap movement and closed near the daily SMA 200. The current level is interesting to watch as it intersects with a bearish trend. If the share prices show bearish reactions then traders could consider entering short positions with a stop above the previous swing high.