U.S stock market set for a pullback as the Fed sees more rate-hike

Fighting inflation has been the top priority of the Fed. Rate-hikes have been done repetitively which put the market on the bearish side. Last FOMC meeting decide a pause on the rate hike but the Fed still sees 2 more rate-hike this year. At the current time, stock market sentiment will continue to depend on the release of inflation data and the Fed’s reactions. The latest inflation data show cooling more than expected which might confirm no more rate-hike. Traders will continue to use each bearish movement in the stock market to accumulate more long positions as a new bull market might not be too far.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index losing the bullish pressure and might start a bearish correction. Traders will monitor the index reaction near the broken trendline. If the index could maintain its position and bounce from the trendline then the bullish trend could continue. On the other hand, a close below the trendline might bring the index back to consolidation between the daily SMA 200 and the trendline.

Kimberly Clark Corp (KMB)

KMB share prices look to print new higher highs and higher lows which means the trend is bullish. At the current time, the share prices are trading near the cluster of averages and might start a bullish bounce from it. Traders will observe the share price reactions near the averages and enter long positions on bullish reactions. On the upside, we expect KMB to continue printing a new higher swing high.