Stock futures add gain before the Fed FOMC meeting
Traders and investors are focusing on the Fed FOMC meeting result which is expected to be announced tomorrow. The aggressive tapering is on the card, the question is how aggressive will the tapering proceed? At the current time, the market might have priced in the tapering and bet on economic recovery.
Anything out of expectation could bring the major indices down for the short-term but we still think the bull still has leg and could target a new all-time high.
Dow Jones Industrial Average (INDU)
DJIA index printed a bearish close yesterday. It seems the bearish movement is in anticipation of two days FOMC meeting. The Fed expected to announce more aggressive tapering which might cause a pullback in the stock market. If DJIA moves lower then the daily SMA 50 & 100 will provide support against the bearish pressure. A deeper pullback toward the daily SMA 200 might be a chance for traders to enter long positions in the stock market.
Crocs Inc (CROX)
CROX share prices are in a bullish trend and each pullback is always supported by either daily SMA 50 & 100. At the current time, the share prices are testing the daily SMA 100. If the share prices could maintain the position and bounce from the averages then the bullish trend set to continue.