Stock market extends bullish movement

The stock market continued its gain after the Fed rate cut. It seems optimism continues to build up as the market is convinced that interest rates will continue moving lower. As mentioned before, traders will continue hold long positions in the stock market and waiting for bearish correction to add more long positions. A bearish correction could happen when the market predicts a recession but as long as the market continues printing higher then there is no reason to turn bearish yet.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index hanging near a record high and continues pressuring to the upside. The index will continue the bullish trend and traders will ride the upward movement. When the index started another bearish correction, traders could observe the reactions near the previously broken high and the 40,000 handle. A bullish reaction from the levels might confirm the upward continuation of the index.

First Majestic Silver Corp (AG)

AG share prices recently made a new higher swing high, confirming a potential bullish reversal. Currently, the share prices might trade sideways, forming a base to continue the upward movement. On the upside, the bearish trendline and the previous swing high will become the resistances to watch. When the share prices break above the resistance level it will confirm the bullish continuation.