U.S stock market rebounded after major drop

The stock market start to recover from deep bearish move which happened on Monday. Tariff uncertainties create the current situation. At the current time, market are recovering from the extreme sell-off, but volatility might stay. Traders will wait and see whether the current bullish movement could gain momentum or not. Latest inflation numbers show cool-off in inflation, which put the market at ease. However, tariff war and peace talk between Russia – Ukraine might create volatility, depend on the development.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index closed below the daily SMA 200 also printed new lower swing low. It is a major bearish indication which might put the index down further lower. However, after the current floor sweep, we might see the index make a bullish attempt to return above daily SMA 200. Ranging movement might happen near the daily SMA 200 until the next direction settled.

Lululemon Athletica Inc (LULU)

LULU share prices moving lower and reached the daily SMA 200 today. There are no bullish reactions which mean the price might attempt to breakout below it. However, traders will monitor the closing level at the end of the day. If the price breakout lower and immediately form a bullish close above the level, then we will have a false breakout. When a false breakout triggered, then it is 100% confirmation to enter long positions in the share prices.

On another note, the share prices might just continue lower and gain more bearish momentum to continue the bearish trend.