U.S stock futures under pressure before the Fed

The stock market is set to open lower today as DJIA futures lower more than 400 points. Traders are getting jittery ahead of the Fed FOMC meeting this week. Aside from that, the launch of AI by Chinese company Deepseek rattles the tech company. Competition going to be tight and major tech companies are set to report earnings this week.

Under the current situation, traders might want to use the bearish correction in the stock market as a chance to add long positions in stocks. Waiting after the Fed FOMC meeting is also a safer option to get a better clue on the next trend.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index made a bearish close last Friday but not a major close. The index might resume the bullish movement and target previous record highs. Traders will continue to maintain a bullish outlook on the index and wait for a bearish pullback. When there is a bearish pullback, traders could add long positions near the support level. On the lower side, 43,300 is the support level to watch.

Unity Software Inc (U)

U share prices have climbed above the daily SMA 200 and continue to maintain the position above the level. The share prices currently trading near the daily SMA 100 and underwent moderate bearish movement yesterday. The price might continue the bearish movement toward the daily SMA 200. Traders could wait near the daily SMA 200 for bullish reactions. When there is bullish reactions, traders could enter long positions.