Stock futures trading upward ahead of the Fed FOMC meeting

The stock market seems to gear for bullish movement, speculating that the Fed will end its rate-hike program today. If the Fed confirms no more rate-hike then the stock market might continue trading upward. Despite the situation, traders might want to weigh on the “Sell in May and go away” tradition. Any bullish sentiment could easily turn bearish this month and it is a chance to add long positions at a lower level.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index got rejected from the trendline before the Fed FOMC meeting. It seems the index will continue consolidating between the daily SMA 200 and the top trendline. There is no confirmation yet on where the index will move. Today’s FOMC meeting should give traders a better outlook on the index’s next movement.

Electronic Arts (EA)

EA share prices closed the previous earnings gap which means the bullish correction has been completed. The next direction of the share prices might depend on the DJIA index movement. When the index breakout higher, we might see EA share prices break out above the trendline too. We think traders could accumulate long positions near the cluster of averages or the current level while waiting for the next direction.