Market News
- Stocks recovered most of their losses by the end of trading on Wednesday, erasing an afternoon selloff after Fed cut its key interest rate for the second time in two meetings as expected but appeared divided on further action for the year. S&P 500 ended the day flat, holding above 3,000 for a second day in a row. Dow Jones rose 36 points while Nasdaq Composite fell 8 points.
- The Fed cut interest rates again last night to help sustain a record-long economic expansion but signalled a higher bar to further reductions in borrowing costs. Fed Chair Jerome Powell said Fed would stop cutting rates when they think they’ve done enough.
- However, Trump tweeted that the Fed had failed and not gone far enough in cutting interest rates as a combination of trade disputes and slowing international growth are weighing on the U.S. economy, especially American businesses, which have been cautious in capital spending.
Market Views
- Asian shares were mixed on Thursday morning, tracking some modest Wall Street gains after the U.S. Federal Reserve cut interest rates but offered mixed signals on the next easing, keeping investors cautious. Nikkei 225 index advanced 222 points but Hang Seng index plunged 284 points.
- Following the Fed decision, investors will watch for the Bank of Japan (BoJ)’s announcement on their interest rate and monetary policy statement later today. The BoJ is widely expected to maintain a pledge to guide short-term interest rates at -0.1% and the 10-year government bond yield around 0%.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,082
Target price:
Protective stop:
Outlook
Last Friday, price reached almost the previous all-time high after moving above the mid-June low resistance level which is also near to the Fibonacci 62% retracement point. However, price gapped lower on Monday and there were indecisive Doji candlesticks for the past three days. Price may test the 20EMA support at 26,540 if the gap cannot be closed. Price will need to move above 27,170 to be bullish again. Stochastic has turned down but MACD is bullish at the moment.
Trading Idea
Wait for a better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,507
Target price:
Protective stop:
Outlook
The index has been trying to close the gap that formed on 2 August but price was capped by Fibonacci 62% resistance point, which is also the upper gap resistance. This could be the end of the rally. Price broke below 20EMA today and this could lead to a test of 25,900 or 25,500. Stochastic has turned down from the overbought extreme. MACD is bullish at the moment but the fast line is turning down, signalling the downward movement for the coming session.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7857
Target price :
Protective stop:
Outlook
This index broke and closed above 7780 on 5 Sep and has been moving higher since. However, a Shooting Star candlestick pattern was formed last Thursday night, raising concern that we could have reached a top. Price has since been consolidating around this range from 7780 to 7970. A move below 7780 could see a correction to 7660. Price will need to move above 7976 to be bullish again. Stochastic has turned down but MACD is bullish at the moment.
Trading Idea
Look to buy dip to 7780. Stop below 7690 for a test to 7980
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2997
Target price:
Protective stop :
Outlook
Price broke and closed above the consolidation zone high at 2940 on 5 Sep and has been moving higher since. The index reached a high at 3022 on Friday night, which is near to its previous all-time at 3028. A tweezer top pattern is raising concern of possible peak. We could see a price correction to the breakout level of 2945. Stochastic is at the overbought region and has turned down but MACD is bullish at the moment.
Trading Idea
Wait for better trading idea.
