Stock futures maintain gain after the previous week’s bounce

The situation of the stock market is bullish for this week as the market sees an opportunity that the Fed will cut interest rates faster. Weaker-than-expected job data was the catalyst of the current upward movement. If inflation data shows a declining trend then the rally in the stock market will gain more momentum. No change to the long-term strategy, traders will continue to accumulate long positions in stocks whenever a bearish correction happens.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index bounced upward from the 37,800 – 38,000 area and might resume the bullish trend. The bullish movement happened after the release of weak job data. We expect the index to continue trading upward this year but expect another bearish turn before the next FOMC meeting. Traders will stay cautious and continue accumulating long positions in stocks whenever a bearish correction happens.

Conoco Phillips (COP)

COP share prices are under a bearish correction phase and soon will reach the daily SMA 200. Traders will mostly stay sideline and await for bullish reactions near the support levels. When there are bullish reactions, traders could enter long positions assuming that the share prices will continue printing new higher highs and higher lows.