Stock futures mildly higher ahead of FOMC

The stock market futures march higher in the Asian and European session ahead of tomorrow FOMC meeting. Once again the market turns their ear from trade tension and focuses on economic data. Despite the upside in the equity market, U.S dollar index is struggling for direction. The market is widely expecting 25 bps rate increase tomorrow, followed by a hawkish comment by The Fed. Less hawkish comment will blow the dollar bull away and open the wagon for the bear.

Investors and traders will monitor consumer confidence data today, forecast saw a reading of 132.2.

Asian & European Stock market

Asian stock market slightly lower on Tuesday. Nikkei up 70.33 points (+0.23%) to 23,940.26, Shang Hai Composite down 16.35 points (-0.58%) to 2,781.14, and Australia ASX 200 down 1.00 points (-0.02%) to 6,185.90. European stock market takes another path upside. DAX Germany up 0.24%, UK FTSE up 0.56%, Euro STOXX600 up 0.46%.

Technical Analysis

Dow Jones Industrial Average (INDU)

The index closed bearish in the previous day after it reaches an all-time high on Monday. The bearish close confirmed rejection from the top of the channel and could become a perfect start for the bearish leg. However, the index futures pointed upside and the bull might erase all losses before the weekend. At the current time, traders will watch the daily close, a second bearish day will assure the path downward to test a level near 26,000.

There is a spike in volume, it could mean major traders getting out of the market, stop triggered, or major bear entered the market. It is too early to judge which one actually happen.

Dunkin Brands (DNKN)

DNKN has been in an uptrend since our analysis on March, 14. The share prices break below the bullish channel Yesterday. Fortunately, there is daily SMA 50 which hold the share prices from further downside. The bull still has a chance for recovery and return the share prices inside the channel.

WPX Energy (WPX)

WPX share prices have been in a sideways trend since May this year. The range span between $17.00 – $19.00 with several cents outside it. We think WPX will respect the range and traded inside it. A short position with a protective stop above $20.00 might become the best trade to take.