Market News
- Wall Street gained ground and U.S. Treasury yields fell on Wednesday after the Federal Reserve signalled a pause in the current easing cycle following the expected announcement of a 25 basis point rate cut. Dow Jones rose 115 points while both S&P 500 and Nasdaq Composite gained 0.33%.
- Fed cut the key interest rates for the third time this year in order to help keep the economy strong in the face of global economic developments and to provide some insurance against ongoing risks. Fed Chair Jerome Powell said that there would be no further reductions unless the economy takes a turn for the worse.
- The decline in the U.S. GDP growth rate kept investors cautious. The Commerce Department’s advance reading of third-quarter GDP showed the American economy expanded at a 1.9% annual rate, down from 2% in the second quarter but beating the 1.6% growth rate analysts expected.
Market Views
- Asian stocks edge higher on Thursday morning after Fed cut interest rates as expected to keep economic expansion on track. Hang Seng advanced 310 points and Nikkei 225 index climbed 43 points.
- Shares of Apple suppliers in Asia region mostly rose, after the Cupertino-based tech giant reported on Wednesday fourth quarter earnings that bested expectations while signalling a big holiday quarter ahead.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,209
Target price:
Protective stop:
Outlook
The index is consolidating within a triangle pattern. It was resisted by the overhead trendline resistance last night but we think it could break this level for a test to its all-time high at 27,403. The 20EMA is rising at the moment as momentum is still strong. Stochastic is moving up at the moment but in the overbought extreme. MACD is bullish and rising with both its lines above the zero line.
Trading Idea
Buy 27,165 for a test of 27,400 with stop at 26,900.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,071
Target price:
Protective stop:
Outlook
The index is moving within a rising channel. The 20EMA coincides with the lower boundary of the channel, acting as a layer of support. Price is likely to move within the channel range until it breaks either way for a directional movement. It has higher chance of breaking the upside as 20EMA is rising at the moment and both Stochastic and MACD are bullish. Price will need to break above the channel to test the gap resistance at 27,443. Stochastic is still strong and MACD is bullish.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8112 :
Target price :
Protective stop:
Outlook
The index broke above its all-time high of 8035 with a bullish candlestick on Monday. It is now moving within a rising channel. The 20EMA is rising at the moment. Price could be on the way moving higher towards its next resistance at 8256. The index will only turn bearish if it breaks below the channel. Stochastic is rising at the moment and MACD is still bullish.
Trading Idea
Wait for better trade idea.
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 3049
Target price:
Protective stop :
Outlook
Price broke above its all-time high of 3028 with a bullish candlestick on Monday. It broke above an ascending triangle pattern as well. The 20EMA is still rising and strong at the moment. As long as price hold above 3028, price is likely to move higher and test its next resistance at 3095. Stochastic is still strong at the moment and MACD is bullish.
Trading Idea
Wait for better trading idea.
