Market News
- Dow Jones fell slightly last night, closing 22 points lower after being pressured by 3M shares as an analyst at RBC Capital Markets downgraded it to sector perform from outperform amid worries over the macro economic environment and overhang from litigation. S&P 500 rose 3 points and Nasdaq Composite was up 43 points.
- Investors awaited the testimony from Fed Chair Jerome Powell which is scheduled to testify in front of the House Financial Services Committee today for more clues on the Fed’s next monetary policy move.
- The Fed’s consideration of rate cuts is not only about growth but also about inflation, which remains well below target, and inflation expectations, which were breaking to the downside before the Fed signaled the likelihood of cuts. Kevin Cummins, a senior U.S. economist at NatWest Markets, still thought that the odds favor of a 25 bps “insurance” cut.
Market Views
- Stocks in Asia inched ahead on Wednesday while higher treasury yields lifted the dollar as markets wondered if the world’s most powerful central banker would confirm or confound expectations for U.S. policy easing this month. Hang Seng was up 109 points while Nikkei dropped 9 points.
- U.S. and Chinese trade officials held a “constructive” phone conversation on Tuesday, marking a new round of talks after the world’s two largest economies agreed to a truce in a year-long trade war.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,777
Target price:
Protective stop:
Outlook
Price has retraced for a three consecutive days after recording its all time high at 27,007 last Thursday after a divergence warning from the MACD. We could see a price pullback towards the 20EMA at 26,580, 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 : 28,241
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 was supported by the gap created on 19th June for the second times. Should price fail to hold at this gap support, it 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 : 7827
Target price :
Protective stop:
Outlook
Price has retraced for the past three days after hitting its record high on last Friday. It bounced off near the 20EMA last night. 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 is 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 : 2978
Target price:
Protective stop :
Outlook
Price has retraced for the past three days after hitting its record high at 3000. The 20EMA is still bullish and is rising. An indecision Doji candlestick was formed last night at the resistance-turned-support level. 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.
