Stock futures tumble 600 points before the Fed FOMC meeting

This week, there is an FOMC meeting that will announce a new interest rate. The current consensus sees a 50 bps rate hike by the Fed. If the rate-increase more than expected then we will have further weakness in the stock market. Traders and investors think that the Fed has been left by the inflation curve and will need to act more aggressively on the rate hike.

Under the current situation, shorting or waiting near the support level might be the best choice traders could do.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA futures lower 610 points which indicates major bearish pressure at the opening of the market. DJIA index fell with strong bearish momentum after the rejection from the level near the daily SMA 50. There is no bullish indication and we might see the index continue to target a new lower low on the chart.

It seems the index might reach the 30,000 handles in the current bearish leg.

Kohls Corporation Com (KSS)

KSS share prices look trading upward on the weekly chart after the breakout below weekly SMA 200 & 100. Traders could treat the current upward movement as corrective movement and prepare for short positions near the averages. On the lower side, the level around $37.50 and $30.00 is the major support level to watch for a bounce.