Stock futures turned negatives after higher UK CPI data

The stock market might open lower today as the index futures are mostly lower at the current time. The latest bullish movement could not hold after higher-than-expected UK inflation data. CPI data come out at 10.1% vs. 10.0% expectation. The worst-than-expected numbers signal the world that tightening might continue until the inflation cools.

Recession fear also heightened which could put more bearish pressure on the stock market. Traders might want to continue to stay cautious for now.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index has reached the 30,500 – 31,250 area and currently will test it. If the share prices get rejected and formed major bearish reactions then traders will expect a bearish continuation. Traders better await further reactions before entering positions. A breakout and close above the daily SMA 50 might become an initial bullish reversal sign.

Trip advisor Inc (TRIP)

TRIP share prices are moving between the daily SMA 100 & 200. There is strong upward movement and the share prices will test the top of the range. Will the share prices break out and continue the bullish movement? Alternatively, will it get rejected and continue the ranging movement between the two averages?