Nasdaq climb to new record high

U.S stock market might be experiencing a bearish correction this week but the Nasdaq index notched a gain and reached a new record high. Traders will continue to monitor the market and take positions in stocks that experience a bearish correction. The U.S. election and the next FOMC meeting is looming which means a profit-taking might take place and traders will position themselves before major moves.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index continued the bearish movement yesterday and almost reached the 42,000 level. There is no bearish continuation today as the index opened higher near the previous day’s opening level. If the index could move upward with strong bullish momentum then we might see the start of a new bullish leg. We think the bearish pressure might be limited as the election and FOMC meeting looms. Traders will continue to use the bearish move in the stock market as a chance to add more long positions.

Keurig Dr Pepper Inc (KDP)

KDP share prices gapped down after lower-than-expected earnings results. The bearish movement might continue toward the daily SMA 200 where it might provide a chance to enter long positions. At the current time, traders will wait until the bearish pressure recede and the share prices stabilize. When there is bullish reactions from the support levels, traders could start entering long positions.