Rising hope on rate-cut boosted the stock market

Major indices are rallying today as rate-cut hope return to the market. Previously the market expect a rate cut will happen with 40% chance. But, as of today, the expectation increased to 80% following the consideration of Kevin Hassett to become the next Fed Chair. While NVDA tanking caused by Alphabet rising dominance in AI sector, it seems the sector will recover after latest dip. We expect more bullish sentiment in December and see new high in DJIA index.

Dow Jones Industrial Average (INDU)

DJIA index bounced from the daily SMA 100 and the orange trend line. It moves up with strong bullish momentum, which might confirm a bullish continuation. Technically, no new lower swing low which mean the bullish structure still intact. No strong reason to turn bearish. However, if the index turn lower again with strong momentum and close below 45,000 also trend line, then the trend might turn bearish.

PDD Holdings, Inc (PDD)

PDD share prices retraced and reached the daily SMA 200 also 61.8% Fibonacci Retracement level. It might find support near the current level and start a bounce to continue the uptrend. However, if there is chance, a consolidation near the SMA 200 and inside the 38.2% – 61.8% Retracement area happen. If there is new lower low with strong bearish momentum, then the share prices will flip the daily SMA 200 and continue bearish.