DJIA futures lower more than 200 points before earnings releases and the Fed FOMC meeting

Earning releases will become the gauge of the market sentiment. Aside from earnings releases, traders will focus on the Fed FOMC meeting this week. The market expects the Fed will start to unwind their tight policy on interest-rate and either hold the rate steady or start a rate-cut. Nevertheless, if the Fed decide to turn dovish on the interest-rate then traders will expect more upside in the stock market.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index moved upward after the bounce from the 32,500 – 33,250 area. The index might continue upward to print a new higher high. However, traders will prepare for short-term bearish movement too as the FOMC meeting looms. As long as the 32,500 – 33,250 area is maintained, traders could expect the continuation of the bullish trend.

Kraft Heinz Co (KHC)

KHC share prices started a bearish movement and reached the horizontal flip level as shown on the daily chart. At the current time, the share prices continue to maintain a position above the level. If the share prices could bounce with strong bullish momentum then traders will expect the start of another bullish leg. However, a close below the cluster of averages will confirm a new bearish trend.