Stock futures lower after two days of gain

The stock market shrugged off the fear of the economic slowdown. Initially, the stock market was trading under pressure but at the end of day, it could finish on the positive side. This week, traders and investors are waiting for the release of inflation data in the Friday trading session. The stock market situation will depend on the inflation data release. If the number continues to increase then we will see the more bearish sentiment. On the other hand, a slowing increase in inflation number will help to weather the bearish sentiment.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index was mostly under pressure yesterday, but at the end of the day, the index avoided a bearish close. At the current time, DJIA futures are lower by 91 points which indicates weakness. If the index starts moving lower again and breakout from the range shown on the chart then traders will expect a bearish continuation. On the other hand, if the index continues upward then the cluster of averages will become an upward target.

Visa Inc (V)

V share prices seem to form bottom around $190.00 – $195.00. There is at least 4 test on the area and bounce happen. However, the share prices also print a lower high on the chart which might suggest the current bounce is a temporary movement before a bearish breakout. Traders could continue to use the $190.00 – $195.00 area as place to enter long positions until a major bearish breakout happen.