Stock futures muted ahead of FOMC meeting

The U.S stock futures mostly trading sideway today near the opening level as traders and investors await the FOMC meeting today. In today’s meeting, the Fed expected to announce the first rate-hike in March. The market situation will depend on the future outlook of a rate hike. More rate-hike planned for this year could trigger a massive sell-off (less likely announced but more likely to happen).

Traders will focus closely on today’s announcement to determine the next direction of the stock market.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index pushed lower again yesterday but no lower low printed. The index also returns to above the opening level which means another neutral close. Traders are getting anxious ahead of today’s FOMC meeting. We might see major movement in the index today and traders might want to proceed cautiously. If the index closes above the daily SMA 200 at the end of the week then there is a chance of bullish reversal.

Automatic Data Processing (ADP)

ADP share prices undergo a bearish correction and managed to reach the daily SMA 200. It is an ideal place for a bounce to happen. If a bounce happens then a higher swing low formed and the share prices could continue the current bullish trend. Traders could use the averages to enter long positions with a tight stop below the daily SMA 200.