US stocks mixed during opening trade as investors await Fed

Major US equity indices witnessed a mixed opening on the first trading day of the week as investors remained on the sidelines ahead of the key FOMC meeting.

At the time of writing, the Dow Jones Industrial Average was down by around 35-points to 20,867, while the broader S&P 500 Index was little changed at 2,372. Meanwhile, tech-heavy Nasdaq Composite Index added 9-points and rose to 5,870.

Renewed selling pressure in oil markets, with WTI crude oil slipping below $48.00/barrel mark to hit a fresh 3-month low, dented investors’ appetite for riskier assets - like equities. This coupled with pre-Fed nervousness held investors back from initiating any fresh positions and has led to a subdued price-action during the opening hour of trading on Monday. 

With an imminent Fed rate-hike move already priced-in, market participants now seem to wait for confirmation and an update on policymakers' economic projection before committing to the next leg of directional move in the markets. The CME group's Fed WatchTool is currently pointing to over 90% probability of a 25 bps rate-hike at the FOMC meeting ending on Wednesday.

Technical outlook

Carol Harmer, Founder at charmertradingacademy.com notes, "as long as 2352 holds we will trade higher...I personally would like to see it hold 2361/60....I think 2378/80 is a viable target for the balance of the position...."

"DJI holding up well as well...we want to be long above 20755.....that seems a good area to be long looking for a test of the 21169 highs...if long at lower levels don't hold below 20611..."

"Nas has Double topped....but indicators positive from neutral levels...we break 5400 and we should continue higher....Do watch this double top though. It might drag the others down if it holds...."