Stock futures are under bearish pressure but set to close the month positive

The recent bearish pressure in the stock market happened as inflation numbers persist and there might be a delay in interest-rate cuts. Despite the situation, major indices might close the month with positive results this month. We might see the bearish movement in the stock market continue for some while until the inflation numbers cool. No change to the strategy this year, traders could continue to use each bearish correction in the stock market as a chance to enter more long positions at a lower level.

Dow Jones Industrial Average (INDU)

DJIA index continues the bearish correction and almost reached the previous swing low. If the index could bounce from the current level with strong bullish momentum then we will have a higher low printed on the chart. On the other hand, a breakout lower and a new lower low will open the path toward a 50% correction level at 36,108. Nevertheless, the long-term trend continues to be bullish for now and traders will observe the index movement near support levels.

Hershey Company (HSY)

HSY share prices are currently trading near the daily SMA 200 and might show bullish reactions from it. If the share prices could move upward then it might attempt to print a new higher swing high based on the upper trendline. However, if the bearish pressure continues then the share prices will target the support level where a triple bottom has formed. Without any bullish close on the daily chart near the daily SMA 200, it is better to stay sideline for now.