Stock market is slightly lower but set to close the week higher

Its a winning week for the stock market as the Fed cut interest rates deeper than expected. The rate cut signaled the urgency to keep up with falling employment and falling inflation numbers. We might see more rate-cut in the upcoming FOMC meeting which means the bullish trend in the stock market will continue. However, the market is also worried about the recession possibilities. If unemployment continues to increase and faster than expectation then the stock market could stall the upward movement reverse the direction for the short term.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index extended the upward movement two days after the Fed cut interest rates. The index reached a new record high and might attempt to extend the bullish movement. Traders will prepare for a bearish correction in the index to form a new higher support level. When the index bounced from the support level then traders could ride the bullish movement until the close of the year.

Altria Group, Inc (MO)

MO share prices are undergoing a bearish correction right now and trading near the $50.00 handle. The share prices might extend the bearish movement to test the previously broken resistance level or where resistance turned support. Traders could expect bullish reactions near the current level and could start accumulating long positions with the expectation of a bullish continuation.