Cautious approach before The Fed Jerome Powell speech

U.S stock market futures slightly lower before the opening bell today. The bearish move comes as a precaution before the Fed Jerome Powell speech today. Sentiment could change drastically after the speech. Traders and investors anticipating how the Fed will view inflation against interest-rate. If the central bank adopt “Average Inflation targetting” stance then the interest-rate could stay steady for a very long time.

Nevertheless, more support given to the market will help the stock market to move further upward.

Asian & European Stock market

The Asian stock market is mixed today. Japan stock market down 82.00 points (-0.35%) to 23,208.86, China stock market up 20.37 points (+0.61%) to 3,350.11 and Australia ASX 200 up 9.80 points (+0.16%) to 6,126.20. The European stock market mostly lower. DAX Germany down 0.15%, FTSE UK flat at 0, Euro STOXX 600 down 0.08%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA moved further higher and nothing to stop the index from moving upward again. The index might continue upward and target the all-time high. Today speech by Jerome Powell could help to lift the index. Traders will continue to hold long positions in equity for now.

International Business Machine (IBM)

IBM share prices could no surpass the daily SMA 200 and always rejected from the averages. We could see a triangle formation on the share’s daily chart. The consolidation seems will continue inside the triangle pattern for now. Traders could apply ranging strategies for now until breakout happens.