Stock futures higher after lower than expected U.S CPI

The stock market seems ready to continue its bullish movement today following a lower than expected U.S CPI data release. The data show a 0.3% increase compared to the 0.4% expectation. It seems the market interprets the data as a possible taming of inflation before this month’s FOMC meeting.

DJIA futures are currently higher 148 points. Despite the situation, traders will continue to stay cautious ahead of the FOMC meeting.

Asian & European Stock market

The Asian stock market is mixed. Japan Stock market up 222.73 points (+0.73%) to 30,670.10, China stock market down 52.77 points (-1.42%) to 3,662.60, and Australia ASX 200 up 12.10 points (+0.16%) to 7,437.30. The European stock market also mixed. DAX Germany up 0.04%, UK FTSE down 0.30%, Euro STOXX 600 down 0.10%

Technical Analysis

Dow Jones Industrial Average (INDU)

ADJIA index bounced from the daily SMA 100 and printed a bullish close yesterday. We have harami formation which indicates indecision of the market. Traders will expect the index to consolidate between the daily SMA 50 & 100. A close above daily SMA 50 will open the path for bullish continuation.

Johnson & Johnson Com (JNJ)

JNJ share prices breakout below the triangle pattern and canceled the bullish outlook. Despite the situation, the long-term trend has not changed yet from bullish to bearish. It is expected to continue the downward movement and test the daily SMA 200. If the share prices could bounce with strong bullish momentum then we might see another bullish leg.