Better than expected GDP data to boost the market before the Fed

U.S quarterly advance GDP posted a 1.9% gain compared to 1.6% gain expectation. The better than expected data push DJIA futures to the positive side. We could expect upside in today’s trading session but it might be limited before the Fed interest-rate announcement.

For today’s interest-rate decision, the market expect a rate cut of 25 bps from 2.0% to 1.75%. If the rate-cut happens and is followed by more dovish commentary then we could expect the stock market futures climb sharply.

Asian & European Stock market

The Asian stock market traded lower before the Fed. Japan’s stock market down 131.01 points (-0.57%) to 22,843.12, China stock market down 14.86 points (-0.50%) to 2,939.32, and Australia ASX 200 down 55.90 points (-0.83%) to 6,689.50. The European stock market traded mix. DAX Germany down 0.25%, UK FTSE up 0.04%, Euro STOXX600 down 0.02%

Technical Analysis

Dow Jones Industrial Average (INDU)

No major action yet in the DJIA index. The index sticks near the top trendline and waiting until today the Fed interest-rate announcement. Further rate-cut is bullish for the index, at the current time, the market expects 25 bps rate-cut today. Will the index finally breakout above the trendline? Alternatively, will it continue trade between the two trendlines and 26,000 – 27,000 range?

Wynn Resorts LTD (WYNN)

WYNN pointed upward and currently testing the daily SMA 200. We could see the share prices rejected in the previous attempt. WYNN might get rejected again from the SMA 200 and move lower to test the level around $102.00 – $103.00. However, if a bullish breakout happens then WYNN might test the top trendline.