Stock market mixed ahead of FOMC meeting

U.S. stock market trading mixed today as traders continue to reduce exposure ahead of this week’s FOMC meeting. The DJIA index move lower pressured mainly by a sharp decline in JPM, while the S&P 500 and Nasdaq remain relatively steady. Despite last week’s optimism from softer inflation and weaker labor data, the market is showing signs of caution. Risk sentiment stays neutral as investors await the Fed’s policy announcement, making today’s movement mixed.

Dow Jones Industrial Average (INDU)

DJIA is pulling back again today and trades slightly below last week’s highs. The index maintain the position inside previous day’s range. Technically, the overall bullish structure remains intact as the index is not far from record high. If the bull regains momentum, the index may attempt another push to test previous record high. If bearish pressure continues, then a deeper pullback toward 47,000 could occur, followed by the trend line which will act as a more important support zone. Overall trend remains bullish while the higher-low structure stays intact.

Netflix (NFLX)

NFLX continues its bearish momentum after last week’s sharp breakdown. The price soon will reach the 78.6% Fibonacci retracement level and the horizontal support level. A break below both levels may trigger a deeper bearish wave toward 100% correction. If a rebound occurs, then the nearest resistance levels are $100.00 and $102.39. Only a move back above the SMA 200 would start to change the broader structure into neutral.