Daily Market Report
From a technical standpoint, the stock market corrective move is likely to continue in the coming hours until we see how inflation data will impact market sentiment. Therefore, the Dow short-term trend remains neutral while the daily chart is still showing a series of higher highs and higher lows which can keep the downside potential limited. As of now, the focus will be on the key support zone located between 35000-34950 levels. The bullish momentum should remain unchanged while prices continue to trade above it. On the flip side, a breakdown can trigger a new wave of weakness that can extend to the next support located at the 34500 level.
Finally, a breakout above the 35500 resistance is needed for a continuation higher toward the 35700 followed by the 35875 level.