Market News
- S&P 500 ended little changed to close at 2,922 last night, as a fall in U.S. jobless claims offset data showing a contraction in U.S. manufacturing activity while investors awaited Fed Chair’s speech on Friday for clues on the central bank’s monetary policy. Dow Jones rose 49 points while Nasdaq Composite declined 28 points.
- The initial claims for U.S. unemployment benefits dropped more than expected last week, suggesting that the labour market was holding firm despite a manufacturing slowdown and concerns that the economy is on a path toward recession. The manufacturing activity contracted in August for the first time in nearly a decade.
- Investors are looking ahead on Fed Chair Powell’s speech today at an annual gathering of central bankers in Jackson Hole, Wyoming, which is expected to yield some clues on whether the Fed will cut interest rates further.
Market Views
- Asian stocks were higher on Friday morning as investors looked ahead to an important speech from U.S. Federal Reserve Chairman Jerome Powell later in the day. Hang Seng index was 150 points higher and Nikkei 225 index was up 44 points.
- Meanwhile, the tensions between Japan and South Korea escalated on Thursday when Seoul said it was cancelling an intelligence-sharing pact with Tokyo amid a bitter trade dispute. The arrangement was designed to share information on the threat posed by North Korea and its missile and nuclear activities.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,318
Target price:
Protective stop:
Outlook
Price has been rebounding since last Thursday. Lat night, it tested the 20EMA resistance point again and formed a potential spinning top candlestick pattern. We expect the mid-June low resistance level to provide resistance and halt the rebound. If the index cannot surpass the mid-June resistance, it is heading towards its previous low point at 24,603 again, while a break above the resistance looks less likely at the moment as MACD is bearish. Stochastic is rising at the moment.
Trading Idea
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Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,227
Target price:
Protective stop:
Outlook
Price reached a low at 24,941 and rebounded, forming a Harami candlestick pattern last Thursday. Price has been testing the 20EMA resistance point for five consecutive days and is consolidating at the moment. We expect the 20EMA to provide resistance and to halt the rebound for a test lower to 24,941 again, while an upside break of 20EMA will target the gap tip at 27,470. Stochastic is turning up but MACD is still bearish.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7742
Target price :
Protective stop:
Outlook
Price broke above the Triangle pattern two days ago without a strong follow through and is now testing its previous high of 7780. If price cannot break above 7780, we could see price testing the downtrend line again at 7510 or dipping to 7195. Above 7780, price is likely to test its previous high of 8035 again. Stochastic is turning up again but MACD is still bearish at the moment
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2932
Target price:
Protective stop :
Outlook
The index has been rebounding from the low since last Thursday. It is currently hovering around the flat 50EMA. Price is likely to retest the high at 2940. A move above 2940 would target the top at 2970 while a movement below would target 2775. Stochastic is rising at the moment but MACD is still bearish
Trading Idea
Wait for better trading idea.
