Stock futures are slightly higher on the prospect of no rate hike next week

The stock market situation was bullish before the market opened today. Traders seem to think that the Fed will not raise interest rates in the upcoming meeting. Yesterday’s CPI data showed rising inflation number but there might be a limited increase as core CPI continue the downward trend. Despite the situation, traders will wait until the actual announcement by the Fed next week. Each bearish correction in the share prices will become a chance for traders to add long positions.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA is consolidating after the bounce from the daily SMA 100. It is currently trading between the daily SMA 50 & 100. We might see the sideway movement continue until next week’s FOMC meeting. If the index could continue the upward movement and print a new higher high then the bullish trend could continue. On the other hand, if the index breaks lower and closes below the daily SMA 200 then we might see further bearish movement.

BP ADR  (BP)

BP share prices are rallying following the strength in oil prices. At the current time, the share prices have closed the bearish gap and might consolidate near it. Traders will wait for a bearish correction toward the support level for a chance to enter long positions. We think the share prices could continue the bullish movement as the bullish trend in oil prices has not stopped yet.