Stock futures are slightly lower after a few day’s rally

Weaker-than-expected job data trigger a rally in the stock market. However, the rally might run out of steam soon and we might see a bearish reversal in the stock market. Traders could continue to use each bearish correction in the stock market as a chance to enter more long positions. In the long term, we still think the stock market will continue the rally and print a new higher high.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index attempting to extend the bullish movement and target a new higher swing high. The index might resume the upward movement and traders who have long positions in stocks will hold their positions for now. However, traders might expect a new bearish leg to happen as no rate cut will happen until the third quarter of this year. If the inflation situation stays the same and job data show an increase more than expected then the bearish situation will persist.

Mastercard Inc (MA)

MA share prices stage a bullish recovery after several days of bearish closes on the daily chart. It will test the level around $450.00 – $455.00 and traders will wait for reactions. With a bearish reaction, traders could consider entering short positions at around $425.00 – $430.00 as the bearish target. In the long term, traders will maintain a bullish outlook and wait for the chance to enter long positions at a lower level.