ECB ready stimulus, eye on the Fed

Today, the ECB provides the market with dovish outlook citing if the inflation target no reached then the central bank ready to announce stimulus. Euro pullback across the global market as soon as the announcement made today. After ECB, the market will focus on the Fed two days meeting. The Fed expected to keep interest-rate steady and announce possible rate-cut in the future.

Asian & European Stock market

Asian stock market mostly higher. Japan’s Nikkei down 151.29 points (-0.72%) to 20,972.71, China stock market up 2.54 (+0.09%) to 2,890.16, and Australia ASX 200 up 39.10 points (+0.60%) to 6,570.00. European stock market advance on stimulus promise. DAX Germany up 0.78%, UK FTSE up 0.53%, Euro STOXX600 up 0.75%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA fell below SMA 200 in the previous downward turn but manage to stage rally and return above the SMA 200. It might be a clue for a further bullish trend in the index. But, we have a bearish channel formed on the daily chart. Without any higher high on the index then we could expect DJIA to start a new bearish leg below SMA 200.

Altaba Inc (AABA)

AABA rallied and return to its daily SMA 200. Currently, the share prices stick near the averages and waiting for a reaction. Will the share prices return above SMA 200 and continue its uptrend? We think the bear has an upper hand and short position near the SMA 200 is the option traders could take.

GoPro Inc (GPRO)

GPRO corrected toward its daily SMA 200 and maintain the level near it. No major breakout or bounce reaction from the averages yet. If the share prices could form a bullish pattern near the SMA 200 then GPRO could continue its recent bullish trend.