Stock market rising as the Fed cut interest-rate

U.S. stock market is trading higher today after the Federal Reserve decided to cut interest rates by 25bps to 3.75%. The move was widely expected and helped improve risk sentiment across global markets. Investors remain cautious, but overall reaction is positive as traders assess the implications of the rate cut for early next year.

Dow Jones Industrial Average (INDU)

DJIA extend the upward movement today after the Fed rate cut as market expected. The index is trading near the 48,000 area and looks will break out and continue the bullish movement. A breakout above this level may open the path toward 48,500. If bearish pressure appears, then price may pull back toward 47,000 or retest the rising trend line. As long as the index stays above the trend line and continues to form higher swing lows, the overall outlook remains bullish.

Wayfair, Inc (NFLX)

W share price continues to move sideways and is trading near the support zone between $89.00 – $92.00. The price is still maintaining its bullish structure above the rising trend line. If buyers return, then the price may attempt to rebound and target $100.00 initially, followed by the previous swing high as the next resistance. If the bearish correction continues, then the $89.00 – $92.00 area and the trend line will become the key level to watch. A break below this support may trigger a deeper pullback toward the EMA 100 around $86.00. Traders will maintain bullish outlook as long as price stays above the trend line and does not break below $89.00.