Stock market start the month with downward movement

QT has ended, and the stock market seems to started the month with downward movement. Traders might turn cautious ahead of the Fed FOMC meeting this month. If the Fed tilted to the dovish side and make another rate-cut, then there is chance the stock market will continue higher. For now, traders will observe closely and use each bearish correction as a chance to enter long positions at a lower level.

Dow Jones Industrial Average (INDU)

DJIA index fall below previous Friday’s low, which might suggest a bearish reversal is happening. The situation is nearing the FOMC meeting this month. On the lower side, the index might challenge the 47,000 level again and look for bounce. We maintain bullish outlook for now and see the index continue the bullish movement to target a new higher swing high.

SanDisk Corporation (SNDK)

SNDK share prices has rallied from $43.20 – $284.76 almost non-stop, and currently it retraced and reached the 38.2% Fibonacci Retracement level. If the retracement continues, we might see the 50% – 61.8% area reached. Traders could wait near both levels or the daily SMA 100 for a chance to enter long positions when there are bullish reactions.