Rally to fade after The Fed clarification
In the previous trading day, The Fed John Williams pour hope of deeper rate-cut for the end of the month FOMC meeting. However, the New York Fed spokesperson immediately reiterate the comment and citing the Fed Williams drawing from Academic research, not hinting at potential policy decision for the next FOMC meeting.
At the current time, the market might continue waiting patiently before the next FOMC meeting. It is either 25 or 50 bps rate cut by the Fed. Deeper rate-cut will trigger bullish rally while 25 bps rate-cut will help maintain current optimism.
Asian & European Stock market
Asian stock traded rush upward on the optimism of deeper rate-cut by the Fed. Japan’s Nikkei up 420.75 points (+2.00%) to 21,466.99, China stock market up 23.02 (+0.79%) to 2,924.20, and Australia ASX 200 up 51.20 points (+0.77%) to 6,700.30. European stock moving also follow Asia lead. DAX Germany up 0.22%, UK FTSE up 0.28%, Euro STOXX600 up 0.31%.
Technical Analysis
Dow Jones Industrial Average (INDU)
DJIA took a lower turn in the previous trading day but manage to recover above its opening level. The index might continue higher today as DJIA future pointed upward more than 80 points before the market open. The shift in the fundamental situation after The Fed John Williams speech yesterday should boost the index higher. At the current time, the market cautiously optimistic before the end of the month FOMC meeting.
Amerisourcebergen (ABC)
ABC has the potential to stay bullish after the test on its bullish trendline show a bullish reaction. The share prices will target $90.00 resistance also the level between $94.80 – $95.00. However, if a breakout below the trendline happens then we might see ABC slide toward the SMA 200.
American Tower Corp (AMT)
AMT overall trend is bullish inside the channel. No breakout below the channel and the share prices bounced from it in the previous test. At the current time, the share prices hovering at the daily SMA 50 and might retest the bottom of the channel again. As long as there is no breakout then AMT will continue inside the channel. On the other hand, a breakout below the channel could trigger selling toward the SMA 100.