U.S stock futures steady after DJIA touched 40,000 for the first time

The bullish trend of the U.S. stock market continues as the major indices print new record highs. Traders are betting on the rate cut this year despite upward fluctuation in the inflation data. We maintain a bullish outlook this year and continue to urge traders to use each bearish correction in the stock market as a chance to add more long positions. When the Fed confirms the first rate cut, we might see more bullish reactions which could bring the stock market to a new record high.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index stayed near the high and managed to print a new higher swing high. However, the index faced 40,000 round numbers which could either cause massive rejection or a major bullish breakout. Traders might want to observe the index reactions near the 40,000 level for now. If the index starts another bearish correction then as long as there is no lower swing low printed, the index could continue the bullish trend.

Valero Energy Corp (VLO)

VLO share prices are under a bearish correction and will soon test the previously broken swing high. The share prices are also near the 50% Fibonacci Retracement level where traders could add long positions. Traders could enter long positions when there is a test and bullish reactions. We think the share prices could continue the bullish trend and target a new higher swing high on the chart. However, if the share prices continue the bearish movement then it will target the daily SMA 200 and 78.6% Fibonacci Retracement level.