Market News
- Apple shares shed 2% on Monday after a downgrade by analysts at Rosenblatt Securities, who predicted the stock could see up to another year of “deterioration.” The move weighed heavily on the major indices including the Dow, which fell more than 100 points. S&P 500 dropped 14 points and Nasdaq Composite lost 63 points.
- Surprisingly strong U.S. jobs data on Friday has forced traders to temper hopes of a sharp 50 bps rate cut at the central bank’s July 30-31 policy meeting, even as a 25bps reduction is still expected at the central bank policy meeting at the end of this month.
- Investors are keeping an eye on testimony from Fed Chair Jerome Powell due Wednesday, which might give investors an opportunity to gauge near-term monetary policy thinking. Also ahead are the central bank’s June meeting minutes, scheduled for release tomorrow.
Market Views
- Asia Pacific stocks mostly declined on Tuesday amid dampened and reduced expectations on the Fed cutting rates later this month. Hang Seng index edged down 241 points, Australian 200 stock index was down 30 points but Nikkei 225 index was up 49 points.
- Oil prices fell on Tuesday morning during Asia hours as demand concerns took hold over tensions surrounding Iran’s nuclear program and OPEC reduction in output.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,751
Target price:
Protective stop:
Outlook
Price recorded its all time high at 27,007 on last Thursday, following a break out above a continuation Flag pattern. However, there was a divergence warning from the MACD. We could see a price pullback towards the 20EMA at 26,566, which is also near the Fibonacci 38% of the rally from 13th June to 4th July. A move below 20EMA would hint of further downside at 26,270-26,310 support zones. Stochastic is in the overbought region and has turned down. MACD is still bullish, hinting this decline could be corrective in nature.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,203
Target price:
Protective stop:
Outlook
Price was resisted at 29,072 after breaking above the triangle pattern. However, the gap was filled last Friday by a bearish red candlestick. Price has moved below the 20EMA and price could be heading towards the Fibonacci 62% at 27,584. Stochastic is in the overbought region and has turned down. MACD is bullish at the moment but is showing divergence and warning of a potential high.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7760
Target price :
Protective stop:
Outlook
Price hit its record high on last Friday but closed lower, following the rebound from the downtrend line. However, there is a divergence warning from the MACD which is giving concern and warning of a price decline ahead. We could have seen a potential high and price could pull back towards the trend line at 7560. Stochastic is in the overbought region and has turned down. MACD is still bullish at the moment and hinting this decline could be corrective.
Trading Idea
Wait for new trading idea and opportunities.
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2969
Target price:
Protective stop :
Outlook
Price hit its record high for a second consecutive day at 3000 last Friday but has declined lower. The 20EMA is still bullish and is rising. However, a divergence warning from the MACD could raise concern. We could have seen a potential high. There could be a possibility that price pullback to the resistance-turned-support level at 2909 or even lower at 2896 the Fibonacci 38% of the rally from 3rd June to 4th July. Stochastic is in the overbought region and has turned down. MACD is still bullish at the moment.
Trading Idea
Wait for trading idea and opportunities.
