Stock futures slightly lower ahead the FOMC meeting

DJIA index futures were down 81 points before the market opened which might turn into a bearish correction before the Fed FOMC meeting this week. The banking sector will continue to become the major focus after First Republic Bank was bought by JP Morgan. There might be another troubled bank that could send the stock market further lower, especially when the Fed decides to raise interest-rate further.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index stick near the top trendline and will wait for further development. Traders are awaiting the Fed FOMC meeting this week which might put the index on sideway movement. We could expect movement after the Fed FOMC meeting. If the index trade lower again then it will consolidate between the daily SMA 200 and the trendline. Meanwhile, if the index could add more bullish pressure above the trendline then the upward movement could continue.

Dow Inc (DOW)

DOW share prices look trading sideway inside a triangle area and currently waiting for a breakout. Traders will wait for a breakout to happen to determine the next direction of the share prices. We think the next breakout might be to the upside as the share prices recently reclaim the daily SMA 200. Traders could use the triangle area to trade the range until a breakout happens.