Stock futures gaining after better than expected job report

Last week, U.S non-farm employment reported a 390k job increase which is better than expected. The number come out better despite fear of economic slowdown caused by rising inflation. The market thinks that the Fed will raise the interest rate by 50 points in the coming FOMC meeting and will continue to raise the rate aggressively after that.

Despite the positive sentiment, traders will continue to stay cautious and ready for a sudden downturn especially when inflation continues to increase.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index currently consolidating inside the 32,500 – 33,250 area. The index might continue upward to target the next resistance level at 34,000 or the daily SMA 100. In the medium-long term, we still think the index will resume the bearish trend and suggest traders stay cautious on the current upward movement.

Dow Inc Com (DOW)

DOW share prices look in a bullish trend. The share price broke above $65.50 handle and continues to maintain its position above it. At the current time, we might see consolidation continue between $65.50 and the upper trendline. Will the share prices break out higher and continue the bullish trend?