U.S stock market turn lower before FOMC meeting

The stock market is taking breather near the top and start moving lower just before the Fed FOMC meeting. The interest rate decision and future outlook will highly influence the market direction. At the current time, the market expects a rate cut will happen and its only a matter of time. If the Fed make another delay on rate-cut, then we might see slight downturn in the market. Traders will continue to use bearish correction in the market as a chance to enter long positions.

Dow Jones Industrial Average (INDU)

DJIA index on the verge of reaching new record high. However, at the current time, the index is slightly lower, and it might consolidate near the current level. If the index turn lower, then as long as there is no new lower swing low, the bullish trend could continue. We expect the index to climb and print new record high as earnings releases coming out.

International Business Machine (IBM)

IBM share prices gapped down and almost reached the daily SMA 200. The current trend is bullish as the price continue printing new higher swing high and higher swing low. Traders could use the daily SMA 200 as a place to look for long positions when bounce reaction happen. On the upside, $280.00 will become the major level to watch as resistance.