Stock futures pointed upward

The U.S. stock market has been in a bearish move this week following the testimony by Jerome Powell. We might see further bearish pressure until the end of the week. At the current time, traders will monitor the testimony by Jerome Powell and the release of U.S. job data at the end of the week. The closing level at the end of the week could give a clue on the next week’s movement. We still think each bearish correction in the stock market is a chance to add long positions this year.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index started a bearish correction as Jerome Powell gave testimony. It might continue lower toward the 37,700 – 38,000 area to test it. Traders could wait for bullish reactions near the area for a chance to enter a long position in stocks. The long-term trend is bullish and traders will continue to use each bearish correction as a chance to add more long positions.

Lululemon Athletica (LULU)

LULU share prices are undergoing a bearish correction since the $516.39 top. The share prices are currently supported by the daily SMA 100 but no higher high printed on the chart yet. It might continue consolidating near the averages or continue the bearish correction toward the daily SMA 200. Traders will wait for major bullish reactions near the averages for a chance to enter long positions.