- Wall Street’s main indices closed lower on Tuesday as data showing stronger inflation and weaker U.S. retail sales in May spooked already-jittery investors awaiting the results of the Fed’s latest policy meeting.
- Data showed an acceleration in producer prices last month as supply chains struggled to meet demand unleashed by the reopening of the economy. A separate report showed U.S. retail sales dropped more than expected in May.
- The Fed is likely to announce in August or September a strategy for reducing its massive bond buying program, but will not start cutting monthly purchases until early next year, a Reuters poll of economists found. All eyes are now on the central bank’s statement at the end of its two-day policy meeting on Wednesday.
- Asia Pacific stocks were mostly down on Wednesday morning but moves remained muted ahead of a highly anticipated U.S. Fed policy decision, due to be handed down later in the day. Hang Seng index fell 93 points and Nikkei 225 index slipped 94 points.
- Also on investors’ radars is the meeting between U.S. President Joe Biden and his Russian counterpart Vladimir Putin later in the day in Geneva. U.S. Treasury Secretary Janet Yellen will also testify on the federal budget before a House of Representatives panel a day later.
Dow Jones Index
(CFD Symbol: US30)
Recommendation : Long @ 34,540
Last : 34,275
Target price: 35,000
Protective stop: 34,300 Triggered
This index has moved below the 20EMA, which is now heading lower, suggesting potential bearish trend ahead. Price could test the previous low of 33,470 if the correction continued. Stochastic is falling now. MACD remains bullish but there is a bearish crossover
Buy at 34,540 for 35,000, with a stop below 34,199. Entry order was filled on 28 May. Moves Stop higher to 34,300 on & June. Stop was triggered on 15 June
Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Long @ 28,750
Last : 28,558
Target price: 29,400
Protective stop: 28,550 Triggered
This index is expected to move within a rectangle consolidation zone that ranged from 27,500 to 29,570 until either end is broken. We could see price moving lower towards the lower end near 27,620 since price has violated the falling 20EMA. Stochastic is falling now. MACD has turned bullish but there is a bearish crossover.
Buy 28,750 for 29,400 with a stop below 28,550. Entry order was filled on 11 June. Stop was triggered on 15 June
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 14,040
Target price :
A new high of 14,161 was created last night. However, price could have formed a potential Harami reversal candlestick pattern, where both the Stochastic and MACD histogram have given divergence warning. If price close below 13,967 tonight, we are likely to see a price decline towards the 20EMA first at 13,800. Stochastic is at the overbought region now and MACD is still bullish.
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
A new high of 4267 was created last night. If price closes below 4233 tonight, this index could have formed the potential Double Top chart pattern, and we are likely to see a price decline towards 4060 if price further violates the 20EMA support at 4215. Stochastic is at the overbought region now. MACD remains bullish but it has given divergence warning
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