Stock market shaky ground before The Fed

The stock market has been in alert mode as The Fed Jerome Powell hint four interest-rate hikes this year. The sentiment in Asian and European stock market soured with most of the indices down. Dow Jones Industrial Average futures also pointed lower before Jerome Powell second day testimony today.

Today speech might give the market further direction of The Fed policies in the future which is important.

Asian & European Stock market

Asian stock market slipped but China stock market advance. Nikkei down 343.77 points (-1.56%) to 21,724.47, Shang Hai Composite up 14.35 points (+0.44%) to 3,273.76 and Australia ASX 200 down 42.70 points (-0.71%) to 5,973.30. European stock market soured before Powell testimony. DAX Germany down 1.46%, FTSE UK down 0.68%, and Euro STOXX 600 down 0.94%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index pulled back in the previous day and might continue its downward movement as The Fed Jerome Powell on the stage. Today the Fed chief will testify in front of the senate and possibly affirm the four interest-rate hike this year. If the tone of testimony positive we should see DJIA lower to daily SMA 100.

Lowe’s Cos Inc (LOW)

LOW gapped down sharply after earnings report which provides opportunity for a long-term trader to enter a position at a cheaper price. Technically, LOW sit near the daily SMA 100 and support around $85.00. If the share prices move further lower, we could look for long position near the daily SMA 200.

Toll Brothers Inc (TOL)

A bounce or a break? Which one will happen on TOL daily chart? The share prices show downward momentum after earnings report this week, and it will test daily SMA 200 soon. If the trend hold, TOL should bounce from the support and trader could place long position.