U.S stock futures lower ahead of interest-rate announcement

Traders and investors are offsetting long positions from the latest rally before the Fed’s FOMC meeting this week. In the meeting, we might not see surprise rate-cut, but traders will observe closely whether there is hint of rate-cut in the upcoming meeting. At the current time, companies are reporting earnings result too which might be a reason that the market will attempt to stay bullish.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index has climbed above the neckline of double bottom pattern. It might resume the bullish movement to close the gap and test the daily SMA 200. The situation looks bullish, however, as long as the index stay below the daily SMA 200, it is not safe yet for the bull. If the index fails to reclaim daily SMA 200 then it might resume the bearish movement to form a triple bottom pattern before turning upward again.

Unity Software, Inc (U)

U share prices return above the daily SMA 200 and currently supported by the averages. It might continue to stick near the averages and wait for more clarity from the interest-rate announcement this week. If the share prices continue moving upward then it will target the top of broadening pattern as shown on the chart. There is chance of the share prices turning lower and aim lower, traders could wait near the trend line for bullish reactions to enter long positions.