The stock market set to trade under bearish pressure

The global market situation becomes uncertain once again as the Fed Jerome Powell reaffirm that the Fed still needs to increase interest-rate to battle inflation. Traders will continue to use each bearish correction as a chance to add more long positions. However, the Europe situation also might come under scrutiny after BOE decides to increase the rate-hike by 50 bps. If inflation continues to increase outside U.S. then eventually it will affect the inflation in U.S. too.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index is moving lower to retest the broken trendline. The index’s next direction will depend on the reaction near the trendline. If the index could bounce with strong bullish momentum then the bullish trend could continue. On the other hand, a major bearish close below the trendline will bring the index back to consolidation between the daily SMA 200 and the trendline.

Clorox Co (CLX)

CLX share prices are moving lower in a bearish correction and currently trading near the cluster of averages. Traders could use the moment to accumulate long positions while expecting the share prices will bounce and continue the bullish trend. However, if the share prices continue lower and print a lower low below the daily SMA 200 then the bearish movement could continue.