U.S stock market under bearish pressure as tension increases in the Middle East

The stock market came under bearish pressure today as tension increased after Iran launched a missile at Israel. We might see the bearish pressure continue to mount in the market and traders will flee to safe-haven assets for now. However, traders will continue to use the bearish correction in the market as a chance to add more long positions at a lower level.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index opened the month with bearish movement but limited inside the previous day’s range. The index is still in bullish trend and a bearish correction is welcomed by traders. When the index starts a bearish correction and reaches support levels, traders could accumulate long positions in stocks. As long as the index prints new higher swing high and higher swing low, there is no reason to turn bearish yet.

Hut 8 Corp (HUT)

HUT share prices managed to break the bearish structure in the latest bullish attempt. The share prices is undergoing a bearish correction right now and will target the daily SMA 200. Traders could wait near the daily SMA 200 or the trendline for bullish reactions. When there are bullish reactions, traders could enter long positions, expecting the start of a new bullish leg.