Stock futures slip at the start of the week

The stock market is set to open the week lower after labor day’s holiday. No major momentum movement yet in the stock market but traders will expect weakness ahead of the Fed FOMC meeting. This month’s meeting might influence the direction of the stock market for the rest of the year. At the current time, the market expects this will be the last time the Fed raises interest-rate. If the Fed plans another rate-hike then we might see more weakness in the stock market. Despite the situation, traders will continue accumulating long positions.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index maintains its position above the daily SMA 50 and looking to add to its gain. There is no bullish continuation confirmation yet but traders will continue accumulating long positions near the daily SMA 50 – 200. This month, we might see further weakness ahead of the Fed FOMC meeting. But, we expect the stock market will start another bullish leg at the end of the year.

Taiwan Semiconductor (TSM)

TSM share prices underwent bearish correction and managed to reach the cluster of averages. The share prices might consolidate near the averages and waiting for reactions for now. Traders will start accumulating long positions near the current level with a stop below the previous swing low. A new lower low below the daily SMA 200 might become the confirmation of a bearish continuation.