Stock futures are set to gain as the Fed reaffirms its stance to bring down inflation

Traders are preparing for the bullish opening of today’s trading session as the Fed comment set bullish sentiment in the market. Despite the bullish build-up, we think the current upward movement will be short-lived and the market will turn bearish again before this month’s FOMC meeting. Traders could regard the current bullish movement as a reaction after consecutive bearish closes.

A bullish correction means a chance for traders to enter short positions at a higher level.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index managed to bounce from the horizontal area shown on the daily chart. The index seems will build more bullish pressure to trade upward before this month’s FOMC meeting. On the upside, the area between 32,500 – 33,250 might provide resistance and hold the price from moving upward.

If a major bearish rejection happens near the area then traders will expect a bearish continuation.

Starbucks Corp (SBUX)

SBUX share prices look bullish as the share prices continue printing a new higher high and higher low. At the current time, the share prices are testing the daily SMA 200. A breakout and close above the averages will confirm further upside in the share prices. Traders will place a stop below $80.00 in case a bearish reversal happens.