Optimism after the Fed and U.S-China deal talk

Equity market across the world rejoice after the Fed decides to hold interest-rate unchanged and cited they will be patient on the future rate-hike. Aside from the rate news, optimism brewing on U.S-China trade talk. The market seems optimistic both countries will reach a deal before the March deadline.

Before the market open, Clorox Co (NYSE: CLX) will present earning the result.

Alphabet (NASDAQ: GOOG), Seagate Technology plc (NASDAQ: STX) will report after market close.

Asian & European Stock market

Asian stock market mostly up. Nikkei up 95.38 points (+0.46%) to 20,883.77, China stock market up 33.66 points (+1.30%) to 2,618.23, and Australia ASX 200 up 28.40 points (+0.48%) to 5,891.20. European stock market on the other hand flat. DAX Germany up 0.20%, UK FTSE up 0.06%, Euro STOXX600 up 0.04%.

Technical Analysis

Dow Jones Industrial Average (INDU)

A close above daily SMA 200 happened in DJIA at the end of the week. It could be a major close after The Fed extremely dovish stance in the previous week. The index upward movement will come under test this week. If the bull could add more gains and distance itself from the SMA 200 then DJIA expected to continue its uptrend.

American Express (AXP)

AXP has the same condition as DJIA, the share prices hanging near the daily SMA 200 waiting for momentum movement. If we consider the share prices testing daily SMA 200 from below then we could easily determine it is the time to take a short position. However, the overall fundamental situation could change after The Fed dovish stance. Traders will monitor the share prices movement and could place a long position near the averages with a small stop order.

Lowe’s Companies (LOW)

Low share prices are testing the daily SMA 200 at the current time. There were several tests previously which end in rejection. We expect breakout will happen after the current test and the return of LOW to a bullish trend. The best option to take is the long position near the bottom of the triangle. Another option to take is entry after the breakout and retest of SMA 200 happen.