No rate-cut, No rate-hike, the market digesting Jerome Powell message

The market has expected rate-cut this year as The Fed sounded dovish in the previous FOMC meeting. However, in the previous trading day, Jerome Powell downplays the rate-cut, mentioned below target inflation was transitory. The message is mixed and the market still digesting it. Tomorrow, we will have job data to observe.

DJIA futures flip-flopping at 0 levels currently

Asian & European Stock market

Asian stock market mixed today. Japan stock market closed for the golden week holiday, China Shanghai Composite up 15.84 points (+0.52%) to 3,078.34, and Australia ASX 200 down 37.50 points (-0.59%) to 6,338.40. European stock market mostly lower. DAX Germany up 0.18%, UK FTSE down 0.07%, Euro STOXX600 down 0.28%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA closed lower on Wednesday trading session but still hang at the middle of 26,000 – 27,000. Nothing much changed yet but current movement incited by The Fed rate-decision. There is no rate-hike, no mention of rate-cut and everything the same as the previous meeting.

We will continue to monitor the index and expect further upside as earnings season continue.

Dropbox Inc (DBX)

DBX trend is bearish as the high gets lower on the daily chart. However, we have first higher low on the chart which indicates the bearish trend has weakened. If DBX could surpass the daily SMA 200 and close above it then DBX could start a new uptrend.

We favor breakout and test at $26.49 high, followed by a retracement to test SMA 200. Traders could use the averages to place long positions.

McDonald Corporation (MCD)

MCD share prices moving in a strong uptrend and the only reason the share prices turn lower recently is miss in the earnings. If the share prices continue lower then $190.00 – $191.00 is the initial levels to watch for long positions. Buying at a lower level around the orange channel is suggested for better risk-reward.