Stock market mixed at the beginning of month

The market situation is mixed as DJIA index move lower while S&P500 also Nasdaq climbing higher. The upward movement led by AI sectors or technology sectors which perform strongly this year. It seems the bullish situation could continue for a while in the AI sector. Earnings season will reach an end soon and traders will prepare for end of year trading. We have mixed signal from the Fed which make December rate-cut uncertain.

Under the current situation, a pullback in the stock market could happen until the U.S. government re-open and deliver economic data.

Dow Jones Industrial Average (INDU)

DJIA index is retracing and almost reach the 47,000 or the previous swing low. There are slight reactions before the index could reach the level, but we might see another bearish attempt. If the bearish correction extended, then traders could wait near the trend line for reactions. We maintain bullish outlook for now as long as the index continue printing higher swing high and higher swing low.

Oracle Corporation (ORCL)

ORCL share prices turning lower and reached the daily SMA 100 also the 38.2% Fibonacci Retracement level. It might continue lower to close the gap from the previous earnings event. Traders could wait near the gap close level and the 50% Fibonacci Retracement level. When there is strong bullish reactions, traders could consider entering long positions.