- U.S. stocks closed lower on Tuesday, with the sell-off fairly and evenly dispersed across the sectors, as rising commodity prices and labour shortages fed fears that despite reassurances from the U.S. Federal Reserve, near-term price spikes could translate into longer-term inflation.
- Economic data released on Tuesday from the Labour Department showed job openings at U.S. companies jumped to a record high in March, further evidence of the labour shortage hinted by Friday’s disappointing employment report. This suggests labour supply is not keeping up with surging demand as employers scramble to find qualified workers.
- China released data on Tuesday that showed factory gate prices rose at the fastest rate in three and a half years in April while consumer prices rose at a more modest pace. That fueled some of the concerns around a rapid rise in inflation that may force central banks to raise interest rates and implement other tightening measures.
- Asia-Pacific markets were mostly down on Wednesday morning following a sell-off in tech stocks that weighed down major U.S. indexes overnight as investors remain cautious over growing inflation worries. Hang Seng index rose 57 points while Nikkei 225 index fell 169 points.
- Oil prices traded marginally higher on Wednesday during Asian trading hours. U.S. crude futures rose 0.1% to $65.35 a barrel and global benchmark Brent traded nearly flat to $68.60.
Dow Jones Index
(CFD Symbol: US30)
Last : 34,141
There was a price correction that brought price lower after forming a Shooting Star reversal pattern followed by the divergence warning. The 20EMA is now acting as first layer of support at 34,090. As long as price can maintain above the 20EMA, the bullish trend remains intact. Stochastic is falling now. MACD is still bullish but there is a bearish crossover.
Buy 34,100 for 34,800 with a stop below 33,690
Hang Seng Index
(CFD Symbol: HK50)
Last : 27,990
This index is expected to move within a rectangle consolidation zone that ranged from 27,500 to 29,570. The 20EMA is falling now, hinting that price may hit the lower boundary at 27,500. Stochastic is falling now. MACD has turned bearish and is moving lower.
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTEC)
Recommendation : Long @ 13,560
Last : 13,269
Target price : 13,950
Protective stop: 13,340 Triggered
A minor rebound occurred after being supported by the resistance-turned-support zone at 13,340, but the rebound was capped by the falling 20EMA. It has now violated 13,340 and is testing the key Fibonacci 62% correction point at 13,170. As long as this level holds, there is still chance for price rebounding. Stochastic could be turning up and MACD is still bullish
Buy 13,560 for 13,950 with a stop below 13,340. Entry and stop were filled on 11 May
S&P 500 Index
(CFD Symbol: US500)
Recommendation: Long @ 4170
Target price: 4240
Protective stop: 4130 Triggered
Price fell below the 20EMA support today, following the two-day selloff after a Bearish Engulfing reversal pattern. The first support lies at 4090. Stochastic is moving lower now. MACD remains bullish but there is a bearish crossover.
Buy 4170 with a stop below 4130 for 4240. Entry and stop were filled on 11 May