Stock market brace for downward pressure before the Fed FOMC meeting

The stock market situation turned slightly bullish for two days before the Fed FOMC meeting. However, the index futures look under bearish pressure before the market opens. Traders are expecting no rate hike in today’s FOMC meeting which means the focus will be the speech after the interest-rate decision. No change to strategy, traders will continue to use bearish movement as a chance to add more long positions.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index was slightly higher before the FOMC meeting today. The market seems taking a breather and will wait for further confirmation. If the index could continue moving upward and close above the daily SMA 200 and also print a new higher swing high then the situation could turn bullish. On the other hand, if the index resumes the bearish movement and prints a new lower low then the bearish trend could continue.

Union Pacific Corp (UNP)

UNP share prices might have formed a double-bottom pattern which could indicate a bullish trend. The share prices currently trading near the second bottom and will attempt to launch upward. The next higher high will confirm the bullish pattern. Meanwhile, if the share prices resume the bearish movement and print a new lower low then the bearish trend will continue.