U.S stock futures under bearish pressure after FOMC meeting

The situation of the stock market turn bearish again after the Fed decide to skip interest rate hikes but indicate two more rate-hike this year. At the current time, DJIA futures are lower than 50 points and might continue to add bearish pressure. Despite the situation, we think the Fed might not be able to raise interest-rate further. Lower inflation is the reason why the Fed might not comply with their two more rate-hike plan. Under the current situation, it is best for traders to continue accumulating long positions while a bearish correction happens.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index traded lower yesterday after the Fed hold interest rate steady but affirm there will be two more interest-rate hikes in the future. It seems the market reacted bearishly toward the announcement and we have a retest of the broken trendline. If the index could maintain the position above the trendline and bounce from it then the bullish trend could continue. On the other hand, if the index continues moving lower with strong bearish momentum then the consolidation between the daily SMA 200 and the trendline will continue.

Pepsico Inc (PEP)

PEP share prices undergo a bearish correction and currently reached the cluster of averages. The share prices might build a support area between the averages and traders could use the moment to enter more long positions. However, if the share prices continue moving lower then as long as there is no lower low printed on the chart, the share prices could continue the bullish trend.