U.S stock futures slightly higher after softer PPI data

The release of PPI data today continues the downward trend in inflation numbers which is bullish for the stock market. However, yesterday’s inflation data could not boost the market as traders concluded there will only be 1 rate cut this year. The question is not about the quantity of rate cuts but whether when the Fed will start cutting interest rates. Under the current situation, the stock market might turn lower and traders could use the chance to continue accumulating long positions at a discount.

PPI data come out at -0.2% vs. 0.2% increase expectation. Will the market use this data as confirmation that inflation numbers will continue moving lower in the upcoming reports?

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index continues to stick near the daily SMA 100 point after the FOMC meeting. It seems the index might take another bearish turn and retest support levels. It means, traders will have another chance to enter more long positions at a lower level. At the current time, traders could stay sideline and wait for further confirmation. As long as the index continues printing new higher highs and higher lows, the trend will continue bullish.

First Majestic Silver Corp (AG)

AG share prices take a downturn similar to the silver price movement. At the current time, the share prices is near the daily SMA 100 & 200 where a bullish bounce might happen. Traders will monitor the reactions of the share prices near the current level. When there is a bullish bounce with strong momentum, traders could enter long positions targeting a new higher high.