The stock market starts the week with a bullish tone

The stock market is on the path higher after crude oil prices take a hit. Traders and investors are watching the earnings release this week to gauge the market sentiment. Aside from that, all eyes are locked on the upcoming election. Whoever wins the election, we think the stock market will continue its bullish rally to a new record high. However, a temporary setback might happen too. Traders will continue to use each bearish correction in the stock market as a chance to add more long positions.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index’s consecutive bearish close stopped today with a bullish gap opening. The index might attempt to turn higher and resume the bullish trend. On the upside, the index will target a new record high or 43,000 and 43,325 levels. On the lower side, 38.2% Fibonacci Retracement levels could be used as the nearest support level.

V.F. Corporation (VFC)

VFC share prices have returned above the daily SMA 200 and undergo a bearish correction. The bearish movement reached the daily SMA 100 and near the bullish trendline. Traders will wait for bullish reactions near the levels for now. If the share prices continue the bearish movement toward the daily SMA 200 then traders could enter long positions when bullish reactions happen.