U.S stock recover as rate-cut bets increase

Friday session has been bullish as traders digesting the comment by Fed’s William which hint for a rate-cut in December. All major indices are moving upward today to recover from this week selling. We are two weeks away from the Fed stopping their quantitative tightening, which is a bullish sign. The market might be moving lower right now, and it is a healthy correction. Traders could accumulate long positions while waiting for the start of December to see whether the market will recover or breaking the bullish trend.

Dow Jones Industrial Average (INDU)

DJIA index has reached the daily SMA 100 & not far from the orange trend line. We have a slight bounce reaction, but no confirmation yet that the bearish movement will stop. Traders will monitor closely the index reactions for now. If it continues lower, print a new lower swing low, then the bullish trend might be under threat. Ideally, we expect consolidation near the current level and eventually an upward bounce to continue the bullish trend.

Ebay, Inc (EBAY)

EBAY share prices gapped lower and continue lower to reach the daily SMA 200. It showed bounce reactions near the 50% Fibonacci Retracement level but come under bearish pressure again. At the current time, the share prices sit near the 50% level and the daily SMA 200. Traders who want to speculate with long positions will but near both levels and place stop order below $77.12 or $72.84.