US Stock Market Technical Analysis | September 20, 2022

U.S stock futures are under pressure as the Fed FOMC meeting kick-off this Tuesday

The overall market situation is currently focused on the Fed. A rate-hike of 75-100 bps is expected and it might trigger a sell-off in the market. Despite the situation, traders might also prepare for a sudden bullish reversal as everything might already be “Priced in”. In the medium-long term, we think the market might continue under bearish pressure until inflation numbers continue to decline.

Next month inflation reports could become the major factor that determines the market sentiment until the end of the year.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index formed a bullish reaction yesterday and start moving upward. The horizontal area drawn on the daily chart shows that there is demand at the current level. However, we are heading into the Fed FOMC meeting which might trigger volatility at the current level. Nevertheless, a bearish breakout and close below the level is a sign of bearish continuation. On the other hand, a close above the area might trigger a bullish correction toward the daily SMA 50.

Intel Corp (INTC)

INTC share prices have lost nearly 60% of its value since the $69.29 top. There is no stop to the bearish movement and the momentum keeps going strong. Despite the situation, the current bearish movement might provide traders with the chance to enter long positions at a huge discount. Just a monthly bullish close on the chart might indicate a bullish reversal is in progress.

If the current bearish movement could reach the 70% mark ($20.78) from the top then it traders might want to start entering bullish positions. Based on the calculation, $20.00 – $21.00 is the area to watch.

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