Stocks little changed ahead of next week’s Fed decision

U.S. stocks are trading flat today, with no major catalyst driving the market. Investors are waiting for next week’s Fed meeting, and most traders prefer to stay cautious until there is clearer direction. DJIA is slightly lower, S&P 500 is also pulling back, while Nasdaq is almost unchanged. Overall sentiment remains neutral after yesterday’s strong move.

Dow Jones Industrial Average (INDU)

DJIA is moving slightly lower today after yesterday’s bullish session. The index is still near the previous swing high, but momentum looks softer as traders wait for the upcoming Fed decision. The bullish outlook remains intact as long as the price stays above support levels. On the upside, 49,000 and 50,000 remain the targets to watch.

Microsoft Corp (MSFT)

Microsoft remains under bearish pressure after forming a double-top pattern near $555. With the neckline at $492, the height of the pattern is roughly $63, giving a measured target near $430. Above the level, there is a purple box area around $450–$460. Also, the 161.8% Fibonacci Extension level at $453.59. Based on the situation, we have strong confluence around $450.00 with some downside potential before bullish reversal.

Traders could wait until the bearish momentum fade and start scaling in long positions. On the lower side, the gap close level at $400.00 might be the final target if the price make extended movement.