Stock market edge lower before the Fed rate decision

DJIA futures pointed lower more than 60 points as traders and investors take a cautious approach toward the Fed FOMC meeting tomorrow. Not much to expect before the news release. On the economic front, CB Consumer Confidence due to release on 10.00 EST with a forecast of 125.1 reading.

The Fed expected to lower rate by 25 bps. Deeper rate cut might trigger bullish pressure in the equity market.

Asian & European Stock market

Asian stock traded mostly higher. Japan’s Nikkei up 92.51 points (+0.43%) to 21,709.31, China stock market up 11.33 (+0.39%) to 2,952.34, and Australia ASX 200 up 19.30 points (+0.28%) to 6,845.10. European stock market mostly lower. DAX Germany down 1.41%, UK FTSE up 0.05%, Euro STOXX600 down 0.84%.

Technical Analysis

Dow Jones Industrial Average (INDU)

The index hanging at the high before today FOMC meeting. Not much movement expected before the announcement of interest-rate. Traders will closely monitor tomorrow FOMC event and determine the index next direction. Deeper rate-cut or further planned rate-cut by the Fed should trigger buying in the index. On the other hand, a more hawkish Fed might trigger sell-off in the index.

Paypal Holdings Inc (PYPL)

PYPL is on the verge of the breakdown below the daily SMA 100. The share prices continue under pressure since the recent earnings report. If the share prices continue lower then we could expect it target $100.00 and the daily SMA 200. On the other hand, a bounce from current level might stop the short-term bearish trend and started a new bullish leg.

Wayfair Inc (W)

W direction is downward inside the bearish channel shown on the daily chart. In the previous analysis, we mentioned that traders could observe 38.2% and 50% Fibonacci Retracement level and the daily SMA 200. At the current time, the share prices almost reach the daily SMA 200 and 50% Retracement.

Long positions when there is bullish reaction is the best options traders could take in W share prices.