Stock futures are slightly lower before the Fed FOMC meeting

The market seems trading mixed ahead of the Fed FOMC meeting. DJIA index futures were down more than 100 points before the market opened. Traders will focus on the Fed’s decision on the interest rate also the next plan for interest rate. The fed might push the rate up again but start to turn dovish and announce no more rate-hike.

If the Fed decides to continue its rate-hike plan after this FOMC then the market might turn bearish again.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index bounced from the daily SMA 50 and printed a bullish close yesterday. The index might continue moving upward before the Fed FOMC meeting. Traders will monitor the index reaction at the top trendline. If a bullish breakout and a new higher high are printed then the index could continue the bullish trend. On the other hand, if the index trade lowers again then we might see another retest on the daily SMA 200.

Yelp Inc (YELP)

YELP share prices traded upward and reached the daily SMA 200. There is a horizontal flip level present near the level and traders will observe the share prices reaction. If the share prices get rejected with strong bearish momentum then the bearish movement might continue. On the other hand, if a bullish breakout happens then traders could use the horizontal flip level as a place to enter long positions.