U.S stock market turned lower after consecutive bullish close

The U.S stock market might enter overheat period soon as the bullish streak reach major resistance levels. Traders will stay cautious and wait for bearish pullback to enter long positions in stocks. Under current situation, traders who have long positions since last dump could continue to hold the positions for now. Yesterday downgrade on U.S. debt could not hinder the bull from pushing the stock market further upside. However, at some point a bearish correction will happen, and it will provide traders with a chance to add long positions.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index has not shown any weakness as the index continue making bullish closes. The index is set to test the previous swing high and attempt to breakout above it. If a breakout and close above the swing high happen, then traders could expect immediate bullish continuation. However, if the index gets rejected and fall below the daily SMA 200 then the situation might turn bearish again with 40,000 as bearish target.

Nano Nuclear Energy, Inc (NNE)

NNE share prices looks trading between the $20.00 – $34.00 levels and currently stick near the daily SMA 100. If the share prices could maintain its position and bounce upward, then traders could expect bullish continuation to target $34.00 and $48.00 record high. On the lower side, a bearish movement below $16.00 might cancel the bullish outlook.