U.S stock futures under pressure as inflation fear persist

The Fed FOMC meeting this week confirms that the inflation threat is real rather than transitory. Most of the Fed members believe that 1-2 rate-hike will happen before 2023. However, it seems the Fed decides to calm the market by postponing the decision to taper or increase the interest rate.

Traders will ask the question of whether the Fed will be too late to respond to the aggressive increase of inflation or it will respond just in time and avoid a meltdown similar to 2018. It might be the best time to search for instruments that could persist during a high inflation environment.

Asian & European Stock market

The Asian stock market mixed. Japan Stock market down 54.25 points (-0.19%) to 28,964.08, China stock market down 0.51 points (-0.01%) to 3,525.10 and Australia ASX 200 up 9.90 points (+0.13%) to 7,368.90. The European stock market mostly lower. DAX Germany down 0.87%, UK FTSE down 1.07%, and Euro STOXX600 down 0.69%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index broke below the daily SMA 50 and continue its bearish movement yesterday. No lower low printed yet at the current time. But, if the index continues building more bearish pressure then we might see further bearish correction toward the daily SMA 100.

Marathon Digital Holdings (MARA)

MARA share prices formed a double bottom pattern and breakout above it. Traders could see the horizontal line shown on the chart which will act as a strong support level. If the share prices make a bearish correction toward it then traders could enter long positions.

*Note, MARA share prices seem affected heavily by Bitcoin price movement. If Bitcoin continues its current recovery then MARA share prices should follow its movement and continue higher.