Stock futures are flat ahead of inflation data

The market will observe the release of wholesale inflation data today. There have not been many reactions since yesterday’s inflation data which was higher than expected. However, we could say the inflation numbers continue moving lower which assures the market for economy soft-landing. Traders will monitor the release of inflation data and wait for a bearish pullback in the stock market for a chance to add more long positions.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index stick near the top without major reactions. Yesterday, the market was slightly bearish after the inflation data showed higher-than-expected numbers. Nevertheless, the numbers are lower than the previous month. Currently, traders are waiting for more data and the index might stick near the record high until the close. Traders will wait for the index to start another bearish correction for a chance to enter long positions in stocks.

Union Pacific Corporation (UNP)

UNP share prices traded lower and reached the daily SMA 100 & 200. It is currently supported by the averages and will attempt to bounce from it. Traders could consider entering long positions and place stops below the previous swing low of around $230.00. We expect the share prices to increase and print new higher swing highs.