Dow - Technical sign of reversal

Dow formed hammer candle on important support MA 50 days yesterday. It signal sign of technical reversal. Check the chart and see what happen when Dow created hammer candle on MA 50 in early Oct 09. If history repeat itself, technically we will see bounce up.
But last time, there were no concern regarding Fed will increase fund rate that can affect dollar carry trade. The following FOMC will be closely watched by trader to see if there is any sign that Fed may increase the rate in short time.
If trader find any sign of it, I think there could be market sell off because stock market discount any news and the herd will overreact. But this market sell off will not be long.

Usually the interest rate will be raised because economy is improving, so in the longer time frame, based on historical data, when the fed raising the rate, stock market went up after went down first.

I prefer not to add any position before Fed announcement because market will be volatile before and after announcement. If you lucky to have correct position, then there will be quick profit, otherwise there will be quick loss.

Best regards

Snip