Major US equity indices witnessed a weak opening on Tuesday as investors remained reluctant to carry big bets ahead of the much awaited Fed monetary policy decision.
The central bank is widely expected to go ahead and raise interest rates but investors remain keen to know the timing, and pace of future rate-hikes, and hence preferred to remain on the sideline ahead of the confirmation.
Meanwhile, a slump in oil markets, with WTI crude oil slammed to fresh multi-month lows near mid-$47.00s, further resulted into weaker investor sentiment and contributed to mildly weaker trading sentiment around riskier assets – like equities.
At the time of writing, the Dow Jones Industrial Average was down around 45-points to 20,835, while the broader S&P 500 Index lost over 9-points to 2,364. Meanwhile, tech-heavy Nasdaq Composite Index trimmed nearly 30-points and dropped to 5,850 during opening hour of trade.
Technical outlook
Carol Harmer, Founder at charmertradingacademy.com notes, "we are still holding in the with our long S&P from 2363.....I think there is a good chance the S&P will try for the ATH but then that’s where we offload our S&P and look to sell...Stops tight though because above 2405 and the market should make it to 2425....Downside we are seeing support in the 2367/65 area and also at 2361...so it really is only below 2352 that the market will look weaker..."
"The reason for selling Nas was the Double Top...that is something as a technical trader I have to do....SL tight at 5407...so I am not ris-ing much...want to take profits around 2340....I want a Ferrari as well.....so wanting doesn't make it happen....but I would like to take profits at the 5340 support...Now if this double top breaks....we look for 5436 as a viable targeted area..."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
USD/JPY pops and drops on BoJ's expected hold
USD/JPY reverses a knee-jerk spike to 142.80 and returns to the red below 142.50 after the Bank of Japan announced on Friday that it maintained the short-term rate target in the range of 0.15%-0.25%, as widely expected. Governor Ueda's press conference is next in focus.
AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood
AUD/USD attacks 0.6800 in Friday's Asian trading, extending its gradual retreat after the PBOC unexpectedly left mortgage lending rates unchanged in September. A cautious market mood also adds to the weight on the Aussie. Fedspeak eyed.
Gold consolidates near record high, bullish potential seems intact
Gold price regained positive traction on Thursday and rallied back closer to the all-time peak touched the previous day in reaction to the Federal Reserve's decision to start the policy easing cycle with an oversized rate cut.
Ethereum rallies over 6% following decision to split Pectra upgrade into two phases
In its Consensus Layer Call on Thursday, Ethereum developers decided to split the upcoming Pectra upgrade into two batches. The decision follows concerns about potential risks in shipping the previously approved series of Ethereum improvement proposals.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.