Stock futures are slightly lower after a flat week

The stock market is once again faced with indecision as previous week’s job data show strong performance which might give a mixed signal to the Fed. However, if inflation turns lower while job data show strong numbers it could mean the economy performs better than expected and it follows the Fed’s scenario to cut the rate. Right now the market keeps shifting its emotions about the possibility of a hard landing vs a soft landing. Nevertheless, we think the stock market’s bearish correction is a big chance for traders to position themselves before the usual end-of-year rally.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index continues to stick near the record high and might extend the upward movement to print a new record high. On the upside, the index will target 44,000 – 44,205 levels when a bullish breakout happens. If the index starts a bearish correction, traders could wait near the 41,000 or the trendline for bullish reactions. Each bearish correction is a chance for traders to add more long positions in stocks.

Colgate Palmolive Company (CL)

CL’s share price bullish trend has been broken down to the downside. The share prices confirmed a shoulder-head-shoulder pattern and might extend the bearish correction toward the daily SMA 200. Traders could wait near the daily SMA 200 for bullish reactions and a chance to enter long positions.