US Stock Market Technical Analysis | May 11, 2022

Stock futures climbing before key inflation data

DJIA futures were up more than 200 points before the release of U.S CPI data today. It seems the market take a breather after yesterday’s bearish close. We think the inflation number will continue to climb and put the market under bearish pressure again. Under the current situation, traders better avoid taking long positions and wait for a bullish correction to add short positions.

In the medium-long term, traders will focus on each inflation data release and the Fed interest-rate decision to determine whether the bearish trend will continue.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index continues trading lower and prints a lower swing low. The bearish trend is expected to continue as long as the inflation number continues to stay high. If the index starts a bullish correction then traders will wait near the trendline or the cluster of averages for a chance to short stocks.

Ryder System Inc (R)

R share prices made a bullish correction and managed to reach the daily SMA 50 & 100. There was a bearish reaction and the price seems will resume the bearish trend. Traders will make use of the situation to enter short positions near the current level or up to the daily SMA 200. A stop level could be placed above the daily SMA 200 or previous swing high.

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