Stock market looking for direction after FOMC meeting

The Fed delivered rate-cut of 25 bps as expected. However, Powell speech mentioned that the Fed might consider no more easing this year. After the speech, we have downward pressure in the stock market but slowly bought before the market close. Traders will digest the meeting result, and we might see some movement in a few days. Focus will turn back on government shutdown situation and Trump-Xi meeting to discuss tariff.

Dow Jones Industrial Average (INDU)

DJIA index reached the 48,000 or the 127.20% Fibonacci Extension level and experience bearish reversal. It might start a bearish correction to retest the breakout point at 47,000. It also could turn higher again without testing and target the 161.8% Fibonacci Extension at 49,341. We maintain bullish outlook on the index and continue to see bearish correction as a chance to load more long positions in stocks.

United Parcel Service, Inc (UPS)

UPS has been in a bearish trend with share prices always bounce lower from the daily SMA 100 & 200. We could see the share prices consistently moving lower with a sharp descend, then a consolidation before another sharp descent. After the current earnings report, the share prices popped up and reach the daily SMA 200. If there is no change to the bearish trend, then traders could expect rejection and bearish continuation.

However, if the share prices could continue to climb and close above the daily SMA 200 then the situation will change. Closing above SMA 200 also means close above $100.00 which is crucial to turn the trend.