CFD Indices – Wall Street Ended Lower Amid Chinese Equity Storm

Market News

  • U.S. stocks ended lower for the first time in six sessions Tuesday, and the Nasdaq Composite took the brunt of the selling, posting its worst daily decline of losing 1.2% since mid-May ahead of earnings from technology giants Microsoft, Apple, and Google parent Alphabet.
  • Apple posted its strongest June quarter ever, with a near doubling of profits and a huge revenue beat for its iPhone business, though shares slipped in the extended session after the company projected slower growth for the current period.
  • When the Fed emerges from its July meeting Wednesday afternoon, it may sound a bit more prone to keeping its ultra-easy policy in place than had been expected just a few weeks ago. Fed officials are likely to express concerns about the rapidly spreading delta variant of the coronavirus.

Market Views

  • Shares in Asia-Pacific were mixed in Wednesday morning trade, with stocks in Hong Kong struggling to bounce back from a two-day rout. Hang Seng index rose 54 points while Nikkei 225 index slid 321 points.
  • Shares of Apple supplier stocks in Asia-Pacific were also watched by investors after the tech giant warned that chip supply constraints could impact iPhones and iPads this quarter.

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 34,994
Target price:
Protective stop:

Outlook
This index hit the resistance high for the third occasions on Monday, which in turn capped price’s rally. A Bearish Engulfing candlestick pattern was formed last night, hinting of potential price correction towards the 20EMA at 34,750 ahead. Stochastic is at the overbought region now. MACD has turned bullish but is relatively weak.

Trading Idea
Buy 34,300 for 35,000 with a stop below 34,000.

Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 25,092
Target price:
Protective stop:

Outlook
This index has been falling sharply after violating its previous low support zone. It has violated the rising trendline that formed since March 2020 as well, suggesting the strong downward momentum. Price could head lower towards 24,380. Stochastic is still falling now and MACD is bearish.

Trading Idea
Wait for better trading idea

Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation : Long @ 14,800
Last : 14,933
Target price : 15,125
Protective stop: 14,600

Outlook
A new high was created at 15,142 on Monday. However, a one-day price decline thereafter has brought price lower to test the 20EMA support at 14,770. If price manage to stay above the 20EMA, it can move higher again, else, we are likely to see a sharper correction towards 14,320. Both Stochastic and MACD are giving divergence warning.  

Trading Idea
Buy 14,800 for 15,125 with a stop below 14,600. Entry was filled on 27 July.

S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4396
Target price:
Protective stop:

Outlook
Price created a new high at 4424 last night but ended the day with a Bearish Engulfing candlestick pattern. With the divergence warning given from both Stochastic and MACD, it could be a sign of a correction towards the 20EMA at 4350. Stochastic is at the overbought region now. MACD remains bullish.

Trading Idea
Wait for better trading idea

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