Stock futures were slightly lower at the end of the week

The stock market is ready for further weakness to close the week on the bearish side. Traders will expect the current weakness to continue ahead of the Fed interest-rate decision this month. No change in the Fed’s tone on interest which means more rates are possible after this month’s hike. Despite the situation, the interest-rate might peaking soon and traders will continue use weakness in the stock market as chance to enter long positions.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index halts its bearish movement near the daily SMA 100. We had a slight bullish reaction yesterday which could signal the start of consolidation between the daily SMA 50 and 100. However, if the bearish movement continues then traders will expect the index to target the daily SMA 200 next. If the index shows major bullish reactions after the Fed interest-rate decision this month then we might see the start of a new bullish leg.

FedEx (FDX)

FED share prices are trading lower and have managed to reach the daily SMA 50. It might continue the bearish movement ahead of the Fed interest-rate decision. Traders could wait near the daily SMA 100 & 200 for bullish reactions. When the share prices could bounce from the averages then traders could enter long positions. However, if the share prices continue moving lower below SMA 200 and form a new lower low then the bearish trend will continue.