Stock futures little changed ahead of the FOMC meeting

The stock market trading not far from the flat level and might continue trading sideways until today’s FOMC meeting. The market expects a 25 bps rate hike followed by 1 more rate hike this year. If the Fed surprises the market without any rate hike then the bullish movement will continue. As the stock market has been trading upward for the last two weeks, traders might want to prepare for a pullback. When a pullback happens, traders could consider entering more long positions.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index hanging at the top before the Fed FOMC meeting. We might see further upward movement after the interest-rate announcement or a major bearish correction toward the horizontal line shown on the chart. Traders will continue using each bearish correction as a chance to add more long positions. As long as the index continues printing new higher highs and higher lows, the trend will continue bullish.

Dropbox Inc (DBX)

DBX share prices are in a clear bullish trend. The share prices moving upward and no significant bearish correction. At the current time, the share prices experience the first bearish correction before the Fed FOMC meeting. If the share prices continue moving lower then traders could wait near the $25.00 handle for a chance to enter long positions. There is daily SMA 50 & 100 to watch as a reference for long positions.