U.S stock market turned lower before the weekly close

This week’s inflation data brought a short-term bullish move in the stock market. However, the inflation data seems less appealing for traders and investors to push the market further upside. At the current time, major indices are under bearish pressure and might continue moving lower following the Fed’s decision to limit rate cuts this year. The market seems convinced that there will be only 1 rate cut this year but uncertain when it will happen. Despite the bearish sentiment, traders will continue use each bearish movement in the stock market as chance to add more long positions.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index pushed lower in today’s trading session below the daily SMA 100. It seems the index will move below Wednesday’s low and continue the bearish movement toward the 38,000 support level. If the index manages to break below the 38,000 level and the trendline then the bearish movement could continue to target the daily SMA 200 and 36,000 levels. At the current time, traders will observe the index reactions near the 38,000 trendline. If the index could bounce upward with strong bullish momentum then the bullish trend could continue.

Exxon Mobil Corp (XOM)

XOM share price bearish correction has reached the daily SMA 200 where bullish reactions might happen. We might see the share prices trading sideways near the daily SMA 200 until it stabilize. When the share prices bounce with strong bullish momentum, traders could enter long positions expecting the long-term bullish trend will continue.