U.S stock market bounce before further weakness?

Last week, the U.S stock market suffered another bearish week and closed lower. It seems the sentiment will continue bearish nearing the Fed FOMC meeting this month. Meanwhile, DJIA index futures are up 30 points at the current time, indicating a bullish opening. Despite the situation, traders will continue to stay cautious and stick with the bearish side until major bullish reactions happen.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index continues the bearish movement and is set to target a new lower low on the chart. The bearish rejection from the daily SMA 200 keeps gaining more bearish pressure. The market seems to position itself toward this month’s FOMC meeting. Under the current situation, it is better to avoid long positions and keep shorting until the Fed’s actual news release.

Dicks Sporting Goods (DKS)

DKS share prices have climbed above the daily SMA 200, meaning the overall trend has switched from bearish to bullish. At the current time, the share prices might consolidate not far from the averages and wait for a trigger to move. If the share prices test the daily SMA 200 then traders could use the moment as a chance to enter long positions.