Stock futures mostly lower as market rebound lose momentum
The U.S stock market is ready to open the day on the bearish side as DJIA futures are currently lower by more than 300 points. The situation might continue bearish as the global market reports higher than expected inflation numbers. Recently, the UK reported inflation of 9.1% which is the highest since 40 years ago.
The odds of the economy entering a recession are increasing and traders might want to stay cautious when holding long positions.
Dow Jones Industrial Average (INDU)
The bullish correction of the DJIA index has reached the previous breakout area. Traders could expect a bearish reaction from the area which might confirm a bearish continuation. The bearish trend has not stopped yet and we think it is better to stick with short positions or wait until stocks reach a lower support level to enter long positions.
Lowe’s Inc (LOW)
LOW share prices have traded lower since the start of this year. There is no bullish reaction and the share price downward movement continues gaining momentum. If the bearish movement could reach the $100.00 handle or the monthly SMA 100 then traders will have the chance to enter at nearly 80% discounts from the $263.31 top.
At the current time, just wait until the bearish pressure recedes before entering major long positions.