U.S stock opened lower as the market took a breather

The bullish movement of the U.S. stock market halted yesterday and there is a bearish continuation today. It seems traders are taking a breather after the rally and will assess whether the rally could continue in the second half. We are nearing the closing of the first half and all of the major indices are on the green side. Despite bearish sentiment since the Fed postponed the rate-cut plan, it seems the market is running on the bullish track. We expect the stock market to continue the upward movement in the second-half and into next year.

However, traders should keep cautious of sudden bearish reversal and gauge the sentiment before adding more long positions.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index turns lower and might continue the bearish movement to test the daily SMA 100. Traders will monitor the index reactions near the averages for now. If the index could bounce upward with strong bullish momentum then the bullish trend could continue. The next higher swing high or lower swing low will decide where the index will move for the medium-long term.

Devon Energy Corp (DVN)

DVN share prices are in an interesting situation where they moved upward with strong bullish momentum and closed above the daily SMA 200. If the share prices could continue the bullish movement and close above the 50% Fibonacci Retracement level and daily SMA 100 then there is a chance of bullish continuation. However, if the share prices continue moving lower, erase all of the gain, and print a new lower swing low then it will resume the bearish movement to target a new lower swing low.