U.S stock market set to recover after yesterday’s bearish close

The global stock market traded mixed but off the low as bullish pressure on commodities prices eased. A bullish correction is set to happen in the stock market but it might not last long. Traders will continue to monitor the development of the Russia – Ukraine conflict and the release of economic data.

The current situation prompt for high inflation reading which could change how the Fed responds in the next meeting.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index closed lower yesterday following the overall bearish sentiment of the global market. The bearish pressure subsided and currently, DJIA futures are higher by more than 500 points. It seems DJIA will start a bullish correction with the top trendline and daily SMA 200 as the target. Traders will continue to observe the index movement for now and stick with short positions near the resistance level.

Sunrun Inc (RUN)

RUN share prices trade below the weekly SMA 200 and currently return to the level. We think there is a chance RUN could continue the upward movement and test the level around $40.00. Another bearish leg might happen to test the $20.00 handle. If the share prices could hold out near the level then it will form a double bottom pattern.

Traders could start accumulating between $20.00 and daily SMA 200 area this year.