CFD Indices – US Indices Hold Steady Despite No Rate Cut

Market News

  • U.S. three major indexes ended modestly higher on Wednesday after Fed held interest rates steady and signaled that borrowing costs are likely to remain unchanged indefinitely. The Dow rose 29 points, S&P 500 was up 9 points and Nasdaq Composite gained 37 points.
  • The U.S. central bank said moderate economic growth and low unemployment are expected to continue through next year’s presidential election. They believe that they have taken out enough insurance to prevent a downturn.
  • Reuters reported that Trump is expected to meet Thursday with top advisers to discuss tariffs on nearly $160 billion of Chinese consumer goods that are scheduled to take effect on Dec. 15.

Market Views

  • Asian stocks edged higher on Thursday morning after Fed signaled rate settings were likely to remain accommodative but the imminent UK election and a deadline for Sino-U.S. trade talks kept investors cautious. Hang Seng index climbed 388 points and Nikkei 225 index rose 51 points.
  • Exit polls for Britain’s election will begin around 2200 GMT Thursday after voting closes and official results will begin to trickle in. Polls show the Conservatives’ lead shrinking ahead of an election starting later today, which could jeopardize chances of a smooth Brexit.

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,949
Target price:
Protective stop:

Outlook
The index has rebounded from the resistance-turned-support level, which is also near to the Fibonacci 38% correction point. It has been supported by the rising 20EMA for the past two days. Price will need to break above its new intraday historical high at 28,202 to be bullish again and for a test of 28,866. A failure to penetrate above 28,202 will likely bring the index back to test the support range at 27,260-27,320 again. Stochastic is now moving higher but is weak. MACD is bullish at the moment.

Trading Idea
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Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,090
Target price:
Protective stop:

Outlook
Price opened with a gap up today, and it managed to break above its overhead 20EMA resistance and the gap resistance of 26,786. As long as price stay above this gap support, it would increase the likelihood of this index testing 27,315 or even higher at the gap resistance range from 27,475 to 27,628. MACD is bearish but there is a bullish divergence warning and a bullish crossover was seen. Stochastic is also moving higher.

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Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8411
Target price :
Protective stop:

Outlook
The index touched its all-time high of 8453 last Monday, but closed at its day’s low, resulting in the formation of a Reversal Day pattern. Price tested the channel resistance but the attempt failed. We could see price moving lower towards the breakout level of 8034 if price move below the rising 20EMA at 8310. Price will need to penetrate above its all-time high to be bullish again. Stochastic is moving higher but is weak. MACD is bullish but the slow line is moving lower towards the zero line.

Trading Idea
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Australian 200 Index
(CFD Symbol: AUS200)
Trend :
Recommendation :
Last : 6748
Target price:
Protective stop :

Outlook
The recent attempt by this index to move higher was resisted near the small gap resistance at 6815. Price is now hovering around the relatively flat 50EMA. A spinning top candlestick pattern was seen yesterday, and a bearish follow-through candlestick could be in the formation. As long as this small gap resistance holds, we could see price moving lower towards its previous low at 6627 or even lower to the rising trendline support. The Stochastic is turning around and is likely to cross down. The MACD has turned bearish with both lines are below the zero line.

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