S&P and Nasdaq indices dip below its 50 hour moving averages
The US stocks have dipped to new session lows ahead of the FOMC decision. In the process, both the S&P index and the NASDAQ index have moved below their 50 hour moving averages.
For the S&P index it bounced off its 50 hour moving average on Monday.
The NASDAQ index (see chart below) briefly move below the moving average on Monday but quickly rebounded above the level. The price action tilts the bias a little more to to the downside.
Needless to say, there will be a lot of market/event/liquidity risk into the Fed decision and the press conference. What is said and the interpretation by the market is hard to predict. As a rresult, traders will look to take clues from the price action and technicals applied to that price action.
If the price stays below the 50 hour MA through the news, there is room to head down toward its 100 hour MA on each chart at 2966.24 for the S&P and 8067.31 for the Nasdaq (blue lines in the charts). Ahead of 100 hour MAs, there is trend line support. Watch those trend lines to give more technical clues to traders.
If the price moves back above the 50 hour MA and stays above, the bulls are still in control.