Pause before The Fed interest-rate decision

U.S stock market set to open flat after previous day gain. Traders and investors are waiting for The Fed interest-rate decision and future guidance. It seems the bet are tilted to no change and rate-cut. Will we see some surprise today?

Nothing much to expect until the news announcement, traders will monitor the result today to determine the future direction of the stock market.

Asian & European Stock market

Asian stock market boosted today. Japan’s Nikkei up 361.16 points (+1.72%) to 21,333.87, China stock market up 27.64 (+0.96%) to 2,917.80, and Australia ASX 200 up 78.10 points (+1.19%) to 6,648.10. European stock market mixed. DAX Germany up 0.09%, UK FTSE down 0.28%, Euro STOXX600 down 0.01%.

Technical Analysis

Dow Jones Industrial Average (INDU)

The index jumped on the prospect of negotiation between U.S and China to end the trade war. DJIA jumped above the top of the channel and has the potential to extend its upward movement. However, today the Fed will announce interest-rate. The market expects no change in the rate and planned rate-cut in the future. If the Fed decides to hold rate steady and plan rate-hike then it cancels current bullish outlook.

Lowe’s (LOW)

LOW fell below its daily SMA 200 and manage to return near it. Yesterday, the share prices showed a bearish reaction by printing a bearish engulfing pattern. If the bear pushes the price lower below the pattern low then we should see a bearish continuation in the share prices.

Seagate Technology (STX)

STX near the breaking point which could turn the share prices bullish. It manages to climb and close above daily SMA 200 yesterday. If the share prices could continue higher and break above the trendline then we should see bullish continuation.