Market News
- The S&P 500 ended flat Thursday as tech was lifted by falling bond yields but gains for the broader market were kept in check by falling cyclical stocks following the Federal Reserve’s hawkish turn a day earlier. Dow Jones slid 210 points while Nasdaq Composite rose 121 points.
- The move lower in Treasury yields suggests that we’re on a path to lower growth at a time when the Fed’s view that inflation is transitory gains in popularity, creating the perfect cocktail for tech as investors look to quench their thirst for growth.
- Many investors were still processing the Federal Reserve’s unexpectedly hawkish message on monetary policy from the previous day, which projected the first post-pandemic interest rate hikes in 2023.
Market Views
- Asian shares inched higher on Friday morning but were set for a weekly loss, as investors continued to digest comments from the U.S. Fed projecting interest rate hikes in 2023. Hang Seng index rose 156 points and Nikkei 225 index gained 89 points.
- The strengthening dollar, another by-product of the previous day’s Fed news, pushed U.S. oil prices down from the multi-year high hit earlier in the week. Oil prices were lower in the morning of Asia trading hours, adding to losses seen Thursday.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 33,849
Target price:
Protective stop:
Outlook
This index has moved below the 20EMA, which is now heading lower, suggesting potential bearish trend ahead. Price is going to test the previous low of 33,280 if the correction continued. Stochastic is falling now. MACD remains bullish but there is a bearish crossover.
Trading Idea
Sell 34,200 for 33,350 with a stop above 34,500.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,725
Target price:
Protective stop:
Outlook
This index is expected to move within a rectangle consolidation zone that ranged from 27,500 to 29,570 until either end is broken. Price tested the 20EMA again today and if it can penetrate above 20EMA, we could see price testing the upper boundary. Else, price could continue its downward movement towards the lower end near 27,620. Stochastic is falling now. MACD has turned bullish but there is a bearish crossover.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 14,200
Target price :
Protective stop:
Outlook
A new high of 14,206 was created last night after price rebounded from the 20EMA support. It could be a Flag breakout with the potential target price at 14,590. However, do watch out for the reversal candlestick pattern since there is potential divergence warning given from the MACD. Stochastic is at the overbought region now and MACD is still bullish.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4227
Target price:
Protective stop:
Outlook
A new high of 4267 was created on 15 June and there is a price correction follow-through. This index is now sitting at the 20EMA support at 4214. A violation of this 20EMA could hint for a deeper correction. Stochastic is falling now. MACD remains bullish but it has given divergence warning.
Trading Idea
Wait for better trading idea
