U.S stock market bracing for a wild ride before this week FOMC meeting

Yesterday, the DJIA index recovered from a 1,100 points dip to close above the opening level. The market situation is expected to continue trading with high volatility nearing the interest-rate announcement by the Fed. Traders might want to stay cautious ahead of the announcement. A more aggressive tightening by the Fed could bring the stock market down.

Technical Analysis

Dow Jones Industrial Average (INDU)

The bearish pressure on the DJIA index pushed the index lower yesterday. A new lower swing low formed but the index immediately reverse the bearish pressure and managed to close the day as a bullish pin bar pattern. Traders are preparing for tomorrow’s FOMC meeting to hear what the Fed will do on the interest-rate ground.

At the current time, DJIA index futures are lower by 272 points which indicates another bearish attempt as yesterday. We think the index’s next direction will depend on the reaction after the Fed interest-rate decision.

Freeport McMoran Inc (FCX)

FCX share prices reached $46.2 high and started a bearish correction. The bearish pullback was mostly triggered by flight before this week’s FOMC meeting. If the share prices could maintain the position near the current level and bounce from the averages then traders will expect a bullish continuation.