Stock futures on the rise before U.S midterm election and inflation data

Traders and investors are getting optimistic after the latest job data show rising unemployment more than expected which might become a signal for the Fed to slow down on interest rate hikes. There will be the release of inflation data this week also the midterm election results. Both events will influence the market directions and traders might want to monitor closely the results.

If the market continues the bearish movement then traders will wait near support levels or lower levels to add long positions. We think there will be another bearish leg before the market starts to stabilize and enter a new bullish trend.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index currently consolidating near the daily SMA 200 and also the 32,500 – 33,250 area. No higher high is printed on the chart which means a major bearish reversal at the current level will confirm a bearish continuation. On the lower side, if the index moves lower then 30,500 – 31,250 will become the area to watch for bullish reactions.

Enphase Energy Inc (ENPH)

ENPH share prices are in a bullish trend following the rising price of commodities. The latest earnings result also outperforms analysts’ expectations. At the current time, the share prices might undergo a bearish correction and traders will wait near the trendline or daily SMA 200 for a chance to enter long positions.