Stock futures slightly lower ahead of key inflation data

The situation of the stock market is currently neutral as traders awaiting the release of U.S. inflation data today. Softer-than-expected inflation numbers could boost the overall sentiment and bring the stock market higher. However, if inflation continues to persist at a high level then it could bring bearish sentiment to the market. Aside from the inflation number, traders will focus on the debt-ceiling issue. Based on previous events, we might see debt-ceiling raised further.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index continues consolidating between the daily SMA 200 and the trendline. There is no sign of a breakout yet and the index might continue trading sideways. There is inflation data released today which could create volatility. However, as long as the index continues to stay between the daily SMA 200 and the trendline, there is nothing traders could do aside from range trading.

Starbucks Corp (SBUX)

SBUX share prices reach a new higher high and undergo bearish pressure which brings the price down to reach the daily SMA 50 & 100. If the share prices continue the bearish pressure then traders could use the averages to enter long positions on bullish reactions. We think as long as there is no lower low printed on the chart, the trend will continue bullish.