Stock futures gain on oil prices retracement and softer than expected inflation data

The DJIA futures are currently up 144 points before the market opens, indicating moderate bullish pressure. The bullish pressure comes as oil prices retrace below the $100.00 handle and inflation numbers come out softer than expected. This week, the Fed will meet and decide interest-rate. Traders will gauge the Fed sentiment to the current rising inflation numbers. If the Fed decides to do more rate-hike than expected then we might see more bearish movement in the stock market.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA direction is bearish and each bullish movement is a correction only. On the upside, there is the trendline and daily SMA 200 to watch as a resistance level. If the index manages to hit both levels then traders will prepare for a bearish reaction. It might be safer for traders to avoid long positions until the DJIA climb above the daily SMA 200.

Coca Cola Co Com (KO)

KO share prices undergo a bearish correction from the $63.02 top. The share prices bearish pressure has strong momentum and might push the price down toward the daily SMA 200. Traders will wait near the averages and the horizontal area for a chance to enter long positions. If a bearish breakout happens below the SMA 200 and no immediate return above the level then traders might want to scale out of long positions.

Sunoco LP Com (SUN)

SUN share prices broke lower and printed lower low on the daily chart. The share prices tested the level near the daily SMA 200 without breakout. We might see the share prices continuing its test on the averages. If a bounce happens then traders could enter long positions with a tight stop. On the other hand, a breakout below the averages might open a bearish path toward the previous swing low around $37.40.