Stock futures nearly flat before the inflation report

The overall sentiment of the global market is mixed today. Traders are waiting for the release of inflation data today to get a better clue on what the Fed will do in this month’s FOMC meeting. Last week’s job data disappoint the market but it might push back the Fed tapering plan.

Today CPI data is expected to record a 0.3% increase. A higher than expected inflation number certainly will boost the chance for rate-hike or more aggressive tapering.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA made another bearish close after the rejection from the daily SMA 100. The index might continue trading lower now and target the daily SMA 200. If the index breakout below the horizontal level and the daily SMA 200 then the bearish trend will continue. A close above the daily SMA 50 will cancel any bearish outlook.

Union Pacific Corp (UNP)

UNP share prices failed to maintain the close above the daily SMA 200. The share prices dip below the averages before making a recovery. At the current time, the share prices are trading inside the cluster of averages. If a bearish rejection happens then we might see a bearish continuation to target $200.00 and $190.00.