Stock market recollect after rate-hike

The stock market suffers blow as the Fed raises interest-rate 25 bps and scheduled one more rate-hike this year. Moreover, the central banks planned three rate-hike next year and raised economic projection. The global stock market also on the back foot following the news and take the downward path.

Today market sentiment will weight on the after-effect of interest-rate while traders and investors digesting The Fed commentary. ECB President Draghi scheduled for a speech on 9.30 AM EST and Fed Chair Jerome Powell also will give a speech later on 04.30 PM. From economic front, there is the release of Core Durable Goods Orders data with a forecast increase of 0.4% m/m and Final GDP with 4.2% increase expectation q/q.

Asian & European Stock market

Asian stock market dragged lower by U.S market. Nikkei down 237.05 points (-0.99%) to 23,796.74, Shang Hai Composite down 15.o4 points (-0.54%) to 2,791.78, and Australia ASX 200 down 11.10 points (-0.18%) to 6,181.20. European stock market also under pressure. DAX Germany down 0.17%, UK FTSE up 0.14%, Euro STOXX600 down 0.17%.

Technical Analysis

Dow Jones Industrial Average (INDU)

The Fed rate-hike might have set up the path downside for Dow Jones Industrial Averages. We have a third bearish day which looks like a three-black-crow pattern. It is a major reversal pattern when confirmed by further bearish close will trigger sharp selling. If the situation continues then we expect DJIA will hit the bottom of channel soon.

International Business Machine (IBM)

IBM jumped above the daily SMA 200 and provide traders with an interesting scenario to watch. When the share prices moving down to test SMA 200, traders could place a long position with the earnings gap as a target. However, the company due to report earnings on October 17, which could lead to sideways movement.

Johnson & Johnson Com (JNJ)

JNJ drifted lower toward the horizontal flip level and its bullish trendline. We could expect some buying reaction near both support levels. Long position with a tight stop below the horizontal support might be the best idea when a bullish pattern formed.

William Sonoma Inc (WSM)

WSM has a similar pattern with JNJ. The share prices drifted lower to support area, trendline and the daily SMA 50. Bullish reaction expected near supports and traders could use the moment to look for a long position.