DJIA futures are slightly higher, looking to add more gain after the previous week’s bullish close

The stock market is set to open higher today as DJIA futures are up 42 points at the current time. Traders trying to stay positive as the second quarter will end soon. Despite the situation, traders might want to stay cautious as inflation might continue to increase and the economy set to enter a recession.

If there is a major bearish sign then it is time to stay out of long positions at least until the bearish pressure subsided.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index made another bullish close and might extend the upward movement to target the daily SMA 50 or the level around 32,500. Despite the situation, the index trend is bearish for the medium-long term. Whenever the index produces major bearish reactions near the resistance levels, traders could enter short positions in stocks.

Pepsico Inc (PEP)

PEP share prices made a bullish recovery and managed to reach the daily SMA 200. The bullish movement might continue to target the top trendline. Traders will observe the share price reaction near the current level. If there is a major bearish reaction then traders could enter short positions with the bottom trendline as a target.