U.S stock set to trade lower as technology sector weighted by series of bad performance

The series of bad earnings results from tech companies put the stock market under bearish pressure. Meta dived more than 20% after reporting lower ad revenue and higher cost. Amazon become the latest tech company that drag the market today as the share prices dropped 13% before the market opened.

Despite the situation, traders might want to weigh on the macro numbers which show improvement in U.S GDP. If inflation numbers continue to cool and the Fed decides to stop interest rate hikes then the market will turn bullish again.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index showed a bearish reaction yesterday not far from the daily SMA 200. The index closed the day as a bearish pin bar pattern and might resume the bearish movement today. If the index trade lower then the 30,500 – 31,250 area is the support area to watch. Traders might want to stay cautious as the Fed FOMC meeting is near and the DJIA index might trade lower before the event.

Oracle Corp (ORCL)

ORCL share price bullish movement has reached the daily SMA 200 where it might experience bearish reactions. Traders will wait for bearish reactions or bullish breakouts from the averages to determine the next direction. Short positions could be considered when there are major bearish reactions from the averages.