U.S stock futures slightly lower ahead of inflation data

The release of inflation data today will influence the market sentiment. If inflation numbers continue to move lower then we will see upward continuation in the stock market. Overall, no change to the bullish outlook after the previous day’s gain. Traders will continue to hold long positions while expecting a bearish correction to add more long positions at a lower level.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index extended the gains yesterday and will look to target a new record high. The index is on the verge of breakout but it could reverse sharply too near the current level. If the index turns lower then 41,500 and 41,000 could become the bearish target to watch. At the current time, trades better stay sideline and monitor the index reactions near the record high.

SM Energy Company (SM)

SM share prices are undergoing bearish correction since the latest leg up. We could see the share prices limited below the trendline and there was a test on the level near $38.00 which formed a triple bottom formation. The share prices have broken above the latest lower high which might be the first indication of a bullish reversal. If the share prices could break above the trendline then we will see a new bullish leg to target the $53.26 level.