Market News
- Dow Jones fell 122 points on Thursday while S&P 500 slipped 6 points. The Nasdaq Composite dropped 12 points. U.S. stock market fell for a second day after Fed’s Chairman Powell had hinted on Wednesday of no rate cut in the near future.
- Powell said on Wednesday that recently low inflation pressures may just be “transitory,” hinting that a rate cut may not be on the horizon, which disappointed traders who were anticipating a rate cut by Dec 2019 due to tame inflation.
- Investors would be wary of more partisan infighting that could hurt the chances of the White House and Congress working together on an infrastructure bill and a plan to raise the debt ceiling after House Speaker Pelosi accused U.S. Attorney General of lying to Congress to protect President Trump.
Market Views
- Asian stock market were lower on Friday morning trade, following a second day of losses overnight on Wall Street as investors continued to grapple with recent comments by U.S. Fed’s Chairman Powell.
- Volume and activity in Asian markets were lower with both China and Japan markets on holiday. Investors are waiting for U.S. Non-Farm payrolls set to be released on Friday night for an indication of the health of the US economy.
Dow Jones Index
(CFD Symbol: US30)
Trend : Bullish
Recommendation :
Last : 26,329
Target price:
Protective stop:
Outlook
Price reached Fibonacci 161.8% projection target of 26,708 on Wednesday night but has dropped below an important trend line support. This drop has triggered a Double Top chart pattern with a reversal target of 25,900. Stochastic has declined to the oversold extreme but MACD is still bearish. We are expecting price to be capped at 26,545 and from there a decline to 25,900 over the next few days. Long-term bullish trend is intact at the moment as this decline is considered to be a correction as at this moment.
Trading Idea
Wait for better trade idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend : Bullish
Recommendation :
Last : 29,956
Target price:
Protective stop:
Outlook
This index is again moving in a sideway consolidation, just above the previous high of 29,668. MACD is rising at the moment but Stochastic is near to the top of its range. With China on holiday, this index may stay in a range for the rest of the week.
Trading Idea
Wait for better trade signals
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend : Bullish
Recommendation :
Last : 7750
Target price:
Protective stop:
Outlook
This index has exceeded its Fibonacci 161.8% target and in the past 4 days, its volatility has also increased. The volatile nature could be a warning of a possible correction coming. MACD has turned bearish but Stochastic is rising from oversold extreme. We expect any price advance to be capped at 7767. Yesterday’s break below 7711 did not have a good follow through but the correction has not been fully averted as yet.
Trading Idea Wait for better trading idea.
S&P 500 Index
Trend : Bullish
Recommendation :
Last : 2922
Target price:
Protective stop :
Outlook
On the daily chart, on the day price make a new historical high, there was a Key Reversal Day chart pattern formed as well This is a reversal pattern. This index has also exceeded its 161.8% Fibonacci projection target. There could be a correction ahead in the coming few days. Price should be capped at 2931 to 2935 zone for a correction lower to 2878. MACD is bearish but Stochastic is rising from oversold zone.
Trading Idea
Wait for better trading idea
