FOMC is expected to increase the level of tapering and decrease expansionary policies in the forthcoming meeting.

In recent days in the stock markets, companies’ financial reports have been better than expected, which has boosted demand on the stock market. On the other hand, the Federal Reserve is expected to increase the level of tapering at the forthcoming meeting in December and reduce the expansionary policy, which could affect the current demand in the stock markets. These concerns made the Dow Jones Industrial Average a short-term corrective trend.

The S&P500 index is still moving in the mid-term uptrend and has reached close to the historical top of 4710, and the index’s reaction to this significant range will be decisive.

In the Dow Jones index, technically, the price is moving in a corrective trend after the recent mid-term rise and the formation of a new historical top level. Therefore, there is a possibility of a short-term correction down to the 34-day moving average. However, the index is still uptrend in the long run, and the first possibility will be to return to the bullish trend.