- U.S. stocks closed lower on Thursday, ending a streak of all-time closing highs on concerns over developments in Afghanistan, while fears of a potential shift in U.S. Fed policy prompted a broad but shallow sell-off the day before the Jackson Hole Symposium.
- The sell-off firmed after hawkish commentary from Dallas Fed President Robert Kaplan, who is not currently a voting member of the Federal Open Markets Committee, said he believes the progress of economic recovery warrants tapering of the Fed’s asset purchases to commence in October or shortly thereafter.
- Meanwhile, blasts outside Afghanistan’s Kabul airport raised tensions amid the U.S. evacuation from the country. U.S. President Joe Biden warned the attackers that “we will hunt you down.”
- Asia Pacific stocks were mixed on Friday morning, with investors digesting hawkish comments from some U.S. Fed officials ahead of its Jackson Hole symposium and the latest developments in Afghanistan. Hang Seng index rose 99 points while Nikkei 225 index slid 90 points.
- U.S. crude ticked up 0.34% to $67.65 a barrel. Brent crude rose 0.25% to $71.27 per barrel, resuming this week’s rally after taking a rest on Thursday, as energy companies began shutting production in the Gulf of Mexico ahead of a potential hurricane forecast to hit on the weekend.
Dow Jones Index
(CFD Symbol: US30)
Last : 35,261
Price is now sitting at the 20EMA support at 35,200 after forming a Bearish Engulfing reversal candlestick pattern. If this index violates the 20EMA, we are likely to see price testing the rising trendline support again. Stochastic could be falling soon. MACD remains bullish.
Buy 35,000 for 35,600 with a stop below 34,800
Hang Seng Index
(CFD Symbol: HK50)
Last : 25,497
Price tested its previous low support zone last Friday. It could be forming a potential Double Bottom chart pattern. There is also divergence warning given from the MACD that hint for possible low. Price has to surpass 20EMA at 25,930 for more upside. Stochastic is rising now. MACD is still bearish.
Buy 25,080 with a stop below 24,600 for 26,000.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 15,325
Target price :
This index has been moving within a rising channel since Sep 2020. It broke out from a Triangle pattern four days ago with the rising 20EMA. We are likely to see more upsides towards 15,570 if it can maintain above the breakout point. Stochastic is moving higher. MACD is still bullish and there is a bullish crossover.
Buy 15,185 for 15,400 with a stop below 14,998.
S&P 500 Index
(CFD Symbol: US500)
Price rebounded after being supported by the rising trendline support that formed since Sept 2020. A new high was formed at 4502, but a Bearish Engulfing reversal candlestick pattern was formed last night. Watch out for the potential price decline towards the rising trendline again. MACD is still bullish but has given divergence warning.
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