Stock futures rally ahead of the Fed FOMC meeting

The rally in U.S stock futures is a sign of position neutralizing before the FOMC meeting today. The real movement might happen after the Fed press conference. Traders will observe closely the Fed tone on inflation and plan of an interest-rate hike. More rate-hike planned is confirmation of bearish trend continuation. Less rate-hike will trigger bullish correction but the situation might continue bearish for the year until inflation is tamed.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index avoids further weakness at the current level. The index seems to attempt to move upward and retest the horizontal level, also the top trendline. Traders will continue to monitor the index reaction at the current level for now as the Fed FOMC meeting looms. We still think the index will continue its bearish trend with or without bullish bounce.

ON Semiconductor Corp (ON)

ON share prices look trading inside a descending triangle formation. However, the prevailing trend is bullish, which means a bullish breakout above the triangle will invalidate the bearish pattern. At the current time, the share price major support is the daily SMA 200 or the bottom of the triangle around $53 – $55