US Stock Market Technical Analysis | September 13, 2022

Stock market ready for the big drop after hotter than expected inflation number

The stock market is ready for a big bearish movement today after CPI data show an increase of 0.1% compared to a decline of 0.1% expectation. Core CPI also increase 0.6% vs. 0.3% expectation. It seems traders now place more weight on this month’s rate-increase by the Fed. Traders will stay bearish for now and wait for the Fed rate announcement to determine the market’s next direction.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index is set to target the upper resistance zone and the daily SMA 200. However, the index might reverse before it could reach both resistance levels. At the current time, traders will continue to stick to the bearish scenario and prepare near resistance levels for bearish rejection to confirm bearish continuation.

Lowe’s Companies Inc (LOW)

Last month, LOW share prices got rejected from the daily SMA 200 and start moving lower. It found support near the daily SMA 100 and start moving upward again. Under the current situation, the share prices might reverse its direction before it could reach the daily SMA 200. Traders will observe the bearish movement, if there is a new lower low printed then we could expect a continuation of the bearish trend.

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