Stock futures slightly lower before key inflation data

The stock market come under pressure after ECB announce the plan to raise interest-rate in July. Moreover, traders and investors are eyeing the release of key inflation data today. If the inflation number continues to tick higher then we will see a major downturn in the stock market. At the current time, it is better to wait at the sideline and see the market reaction after the data release.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA breakout from the horizontal range shown on the chart and move lower with strong bearish momentum. It seems the bearish trend has been confirmed. However, there are key inflation data released today which could overturn the bearish pressure. Traders will observe the closing level at the end of the day. If the index maintains the bearish pressure and continues lower then traders will be ready for a new bearish leg to print a new lower low.

Baidu Inc (BIDU)

BIDU share prices traded upward and reached the daily SMA 200. The fundamental situation is mostly influenced by the strict situation in China. It seems the situation improved which is reflected in the share prices’ bullish movement. However, the share prices might get another rejection from the daily SMA 200 and start a new bearish leg.

Nevertheless, we think the next bearish leg might be the last before the start of economic recovery. Traders could use the moment to enter short positions near the averages with a tight stop above it.