Market News
- U.S. stocks ended lower on Tuesday, slumping on a sharp decline in telecom stocks and weak housing starts data that overshadowed better-than-expected earnings from Walmart and Home Depot. Dow Jones slid 267 points, S&P 500 fell 35 points and Nasdaq Composite declined 75 points.
- Fund managers recently trimmed their overweight positions on technology stocks to a three-year low as inflation worries left growth stocks vulnerable to a pullback, and turned overweight on UK stocks for the first time in seven years, a survey from Bank of America showed.
- The Fed has stuck to the narrative that a recent rise in inflation would be transient and that it therefore should keep its easy monetary policy settings. The minutes from the Fed’s April meeting, to be published late on Wednesday, are expected to repeat that message.
Market Views
- Stocks in Asia-Pacific slipped in Wednesday morning trade, as uncertainties over inflation prompted investors to reduce exposure to riskier assets for now. Nikkei 225 index slumped 398 points while Hong Kong is closed for a holiday today.
- Oil prices pulled back also after media reports the United States and Iran have made progress on reviving a deal restricting the OPEC country’s nuclear weapons development, a development that could lead to increased supply from Iran.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 33,919
Target price:
Protective stop:
Outlook
The two-day rebound brought price back to the Fibonacci 62% correction point of the May’s decline. In order for this index to move higher, it has to surpass this resistance. If price fails to move this resistance, it is likely to head lower to 33,285. Stochastic has a bullish crossover but MACD remains bullish.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,507
Target price:
Protective stop:
Outlook
This index is expected to move within a rectangle consolidation zone that ranged from 27,500 to 29,570. A Bullish Engulfing was seen last Friday after trading near to the lower boundary of the range. A rising window was created yesterday and if this gap can maintain, price could go higher. Stochastic had a bullish crossover now but MACD is still bearish.
Trading Idea
Buy 28,050 for 29,300 with a stop below 27,550
Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 13,154
Target price :
Protective stop:
Outlook
Price rebounded after hitting the rising trendline support that formed since November 2020. We could see price continuing to move higher if it can surpass the 20EMA resistance at 13,450. The bullish trend will remain intact as long as price stay above the trendline. Stochastic is rising now. MACD has turned bearish.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4110
Target price:
Protective stop:
Outlook
Price rebounded after hitting the Fibonacci 50% correction point. It has to surpass 4183 for higher upside. A violation of 4034 should be closely watched as it will form lower highs and lower lows hinting of a downtrend ahead. Stochastic is moving higher now. MACD remains bullish despite having a bearish crossover.
Trading Idea
Sell 4115 for 4005 with a stop above 4185
