- Wall Street finished marginally lower on Tuesday, although the slightly subdued ending to August failed to detract from a strong monthly performance by its three main indexes, in what is traditionally regarded as a quiet period for equities.
- U.S. consumer confidence index fell to 113.8 in August, which was a six-month low, according to survey data from the Conference Board on Tuesday, offering a cautious note for the economic outlook. Meanwhile, the S&P/Case-Shiller house price index composite grew by record 19.1% in June.
- Oil was steady, with U.S. crude at $68.49 a barrel, and Brent crude at $71.72 per barrel, not much changed on the day, having finished August with their first monthly losses since March. An OPEC+ meeting, where major producers will decide whether to go ahead with their plan to add supply, is due to take place later today.
- Asia Pacific stocks rose on Wednesday morning, even as China released more disappointing data. Investors are also asking questions whether the global economic recovery from COVID-19 is durable and awaiting central bank decisions on when to begin asset tapering. Hang Seng index rose 179 points and Nikkei 225 index advanced 357 points.
- The Caixin manufacturing purchasing managers index (PMI) was a disappointing 49.2 in August, below the 50-mark indicating growth. This follows data released on Tuesday that showed the manufacturing purchasing managers’ index (PMI) was at 50.1 and the non-manufacturing PMI at 47.5.
Dow Jones Index
(CFD Symbol: US30)
Last : 35,457
Price is supported by the rising 20EMA which is acting as support at 35,270. If it can surpass its recent high of 35,449, we are likely to see price testing its all-time high at 35,628. Stochastic is still rising now. MACD remains bullish and a bullish crossover is likely.
Buy 35,300 for 35,600 with a stop below 34,950
Hang Seng Index
(CFD Symbol: HK50)
Last : 26,042
Price tested its previous low support zone on 20 Aug. It could be forming a potential Double Bottom chart pattern. There is also divergence warning given from the MACD that hints of a possible low. Price has to surpass 20EMA at 25,890 for more upside. Stochastic is rising now. MACD is still bearish.
Buy 25,600 with a stop below 25,100 for 26,800.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 15,614
Target price :
This index has been moving within a rising channel since Sep 2020. It broke out from a Triangle pattern on 23 Aug and tested the upper boundary of the channel for the past two sessions. If price cannot further breakout, we could see a pullback towards 20EMA at 15,260. Stochastic is at the overbought region. MACD is still bullish and there is a bullish crossover.
Buy 15,400 for 15,700 with a stop below 15,200
S&P 500 Index
(CFD Symbol: US500)
Price rebounded after being supported by the rising 20EMA at 4469. We are likely to see price testing 4560, which is the upper boundary of the rising channel. Stochastic is at the overbought region. MACD is still bullish.
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