Stock market hanging near high, Nasdaq set new record high

The bullish sentiment in the stock market has not subsided yet. One day it might trade sideway but the next day we see a new record high printed. Under the current situation, there is nothing to expect aside from further bullish movement. However, a bearish pullback might be due and traders could wait near support levels for a chance to add more long positions. This year should be bullish and when the Fed announces the first rate-cut, the bullish movement could continue.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index is continuing the bullish movement today and will seek to print a new record high. Next week, we might see further bullish movement on the index and traders will continue waiting for a bearish pullback. Before the next Fed meeting, we might see a temporary halt or a bearish pullback. If the index continues trading upward after the Fed’s meeting then the bullish trend will continue until the end of the year.

CVS Health Corporation (CVS)

CVS share prices are trading inside a triangle pattern and currently testing the bottom of the triangle. Traders will wait for the breakout from the range to confirm the next direction. As the share prices trading above the daily SMA 200, it is better to assume that the share prices have more odds to do a bullish breakout. However, if the share prices trade lower then traders will place a stop order below the previous swing low.