U.S stock market continue bullish correction

Last week, major indices staged recovery after consecutive weekly bearish closes. The market situation slightly bullish today, continuing last week bullish recovery. We could say the current upward movement is anticipation toward the Fed FOMC meeting this week. If the Fed turn dovish and decide more interest-rate cut, then the stock market could continue the upward movement.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index moving upward in a bullish corrective move. It seems the market are anticipating this week FOMC meeting which might sound dovish. On the upside, the index will test the daily SMA 200 and attempt to breakout above it. However, we think the index will move near the averages until the FOMC meeting result announcement. Under current situation, traders better wait sideline and decide to take positions after reactions from daily SMA 200.

Goldman Sachs (GS)

GS share price’s bearish pullback has brought the share prices down to the daily SMA 200. Heading into the Fed FOMC meeting, it might find support at the daily SMA 200 and bounce upward. If the share prices bounce upward, then the daily SMA 100 is the bullish target to watch. However, if bearish breakout with strong momentum happen below daily SMA 200 then traders will prepare for trend shift to bearish.