Stock futures on the rise before the Fed rate-hike

The stock futures are mostly higher today in an attempt to continue the bullish movement in October. Traders are preparing for the upcoming rate hike by the Fed this week. A rate-hike of 50 bps is positive for the stock market. Moreover, when the Fed says they will slow down the rate hike. At the current time, traders might want to stay sideline and await the announcement before making a major trading decision.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index holding out near the daily SMA 200 and might continue sideway near the averages until this week’s FOMC meeting. Another rate hike is planned and there might be another 50-bps rate hike in December. Traders will monitor closely the market reactions after the Fed announcement. If the DJIA index starts moving lower then it will target the 30,500 – 31,250 area.

Electronic Arts Inc (EA)

EA share prices look trading in a bearish channel but also inside a triangle pattern. The share prices challenged to top trendline and show bearish reactions. It also coincides with the cluster of averages which means there is a chance of bearish continuation. If the share prices continue moving lower then traders will expect a test on the bottom trendline.