DJIA index slide on the prospect of continous interest-rate hike

The stock market traded lower on Monday as traders translated Jerome Powell’s message of the terminal rate which is higher than the projection in the September meeting. We might see the market trade lower this week as it prepares for next week’s interest-rate decision. Next week, the Fed expected to raise the interest rate by 50 bps. Traders might want to stay cautious and monitor the interest-rate decision, and inflation data to determine what might happen next.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index looks under bearish pressure and might start a bearish movement to test the broken trendline and daily SMA 200. Traders will wait for the index to reach the levels to test it. If there are major bullish reactions then the bullish trend could continue. However, if the index closes below both levels then traders will prepare for a bearish continuation.

Nike Inc (NKE)

NKE share prices make a bullish correction and managed to reach the daily SMA 200. Currently, traders will monitor the share price reactions near the averages. If there are significant bearish reactions then traders could enter short positions. On the other hand, if the share prices breakout above the average, traders could enter long positions on a successful retest.