U.S stock future charge upside after lower-than-expected inflation data

The Fed’s favorite inflation gauge, the personal consumption expenditures shows a 0.1% increase vs. 0.2% expectation. PCE increased 2.2% annualized which is lower than 2.3% expectation. Based on the data release, traders getting more optimistic that the Fed will continue to cut interest rates and the stock market could continue trading upward. Nothing much traders will do aside from continuing to hold long positions and wait for a bearish correction to add more long positions at a lower level.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index continues to hang near the record high without a strong bearish sign. The market is optimistic and it will attempt to print more record highs. Nothing changed, meaning traders could only wait for a bearish correction toward support levels. When the index turns lower and produces bullish reactions near the support level, traders could add more long stock positions.

Visa Inc (V)

V share prices retraced after the company was hit with a debit card monopoly accusation. The bearish movement looks to find support near the averages but no clear sign of reversal yet. Traders will continue to monitor the share price reactions and enter long positions when the price could stabilize near the averages. On the lower side, $250.00 could become the bearish target to watch if the selling turns into panic.