No rate-hike at least until 2023, U.S stock futures reacted bearishly today

The Fed has confirmed that the central bank will hold interest-rate steady at the current level at least until 2023. The decision come as inflation level below the long-term target and the current easy money policy will help to spur the inflation.

Normally, this news will trigger buying in equity but it seems the opposite happen in the global market and U.S futures. If the situation continue then we might see another tech rout as happened in the beginning of month.

Asian & European Stock market

The Asian stock market mostly lower. Japan stock market down 156.16 points (-0.67%) to 23,319.37, China stock market down 13.49 points (-0.41%) to 3,270.44 and Australia ASX 200 down 72.90 points (-1.22%) to 5,883.20. The European stock also traded lower. DAX Germany down 0.80%, FTSE UK down 0.71%, Euro STOXX 600 down 0.73%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA closed higher yesterday but only for 36.78 points gain. We could regard it as a neutral day as traders deciphering the Fed message. Today, the index might open lower as the index futures traded nearly 300 points lower. The next bearish correction might bring the index down toward 26,000 – 27,000.

Shopify Inc (SHOP)

SHOP share prices seems in a bearish correction following the tech rout last week. We think the share prices might target the 50% Fibonacci Retracement where there is horizontal support level present. Aside from the horizontal level, the daily SMA 200 might be aligned when the share prices reach the level.

Traders will observe the level for the opportunity to enter long positions when SHOP manages to reach it.