U.S stock futures climbing as Evergrande tension eased and no change in the Fed decision

The Evergrande inspired sell-off has stopped and the market take a bullish turn yesterday. The bullish movement was also helped by The Fed’s decision to hold the interest rate steady and provide no change to the stimulus situation. Tapering soon will happen but under the current situation, it seems the Fed will continue waiting for a better time.

Traders will stay cautious for now as the sentiment could turn bearish again nearing the end of September.

Asian & European Stock market

The Asian stock market is mostly higher. Japan Stock market closed China stock market up 13.73 points (+0.38%) to 3,642.22, and Australia ASX 200 up 73.30 points (+1.00%) to 7,370.20. The European stock market is also higher. DAX Germany up 0.71%, UK FTSE down 0.10%, Euro STOXX 600 up 0.83%

Technical Analysis

Dow Jones Industrial Average (INDU)

There is a bullish reaction after the FOMC meeting yesterday which might be “priced in”. The index futures are currently higher more than 200 points which indicates a bullish continuation. On the upside, the index needs to close above daily SMA 50 & 100 to confirm the continuation of the bullish trend.

United States Steel Corp (X)

X share prices fell and closed below the daily SMA 200 which might indicate the change of trend from bullish to bearish. However, there is no bearish follow-through as the price maintains close near the averages. If the price could return above the daily SMA 200 at the end of the week then traders will expect a bullish bounce from it.