U.S stock market under bearish pressure before FOMC

The stock market situation seemed bearish before the interest-rate announcement by the Fed this week. Last week, other central banks started to cut interest rates and provide an encouraging outlook on the inflation side. However, stronger-than-expected U.S. job data caused the market to shun the idea of rate cuts. At the current time, traders are betting that the rate cut might happen in September or the end of the year. Nevertheless, each bearish movement in the stock market is a chance for traders to accumulate long positions this year.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index hanging near the daily SMA 100 and seems under bearish pressure right now. However, the index slowly making a recovery and returning to its opening level. No change to the bullish trend of the index yet but we might see it continue trading near the daily SMA 100 for now. Will the index bounce upward and resume the bullish trend? Alternatively, will the index continue the bearish movement, print a new lower low, and turn the trend bearish?

Airbnb Inc (ABNB)

ABNB share prices managed to bounce from the daily SMA 200 in the latest bearish attempt. There was a gap after the recent earnings report which might be the upside target of the share prices. However, if the share prices reverse downside and close below the daily SMA 200 then we might see further bearish movement. Traders better await another bearish movement to retest the daily SMA 200 before entering long positions.