- Wall Street ended lower on Thursday after weekly jobless claims fell to a near 18-month low, allaying fears of a slowing economic recovery, but also stoking worries the Fed could move sooner than expected to scale back its accommodative policies.
- The Labour Department said initial claims for state unemployment benefits dropped 35,000 to a seasonally adjusted 310,000 for the week ended Sept. 4, the lowest level since mid-March 2020. That suggested that job growth could be hindered by labour shortages rather than cooling demand for workers.
- Reports that Beijing slowed down approval for all new online video games sent shares of U.S.-listed gaming stocks Activision Blizzard, Electronic Art, and Take-Two Interactive Software down more than 1%.
- Asia Pacific stocks were higher on Friday morning, as investors digested the latest European Central Bank (ECB) policy decision. Ongoing efforts to support the economic recovery from COVID-19 were also in focus as the week draws to a close. Hang Seng index advanced 405 points and Nikkei 225 index gained 339 points.
- Investors now await the next step in China’s regulatory tightening on a slew of private industries, as well as the next move to maintain the country’s economic recovery from COVID-19.
Dow Jones Index
(CFD Symbol: US30)
Last : 34,964
Price broke and closed below both the 20EMA support and the rising trendline after being resisted by the price resistance zone of 35,500. The 20EMA is now turning bearish, and we are likely to see a correction towards its previous low at 34,560. Stochastic is falling now. MACD remains bullish but had a bearish crossover.
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Last : 26,096
Price has been moving higher after forming a Double Bottom chart pattern. It is now hovering around the 20EMA, and we could see price testing its key resistance of 26,890. This index has to penetrate above this resistance for more upside ahead. Else, a pullback could follow. Stochastic is at the overbought region now. MACD has turned bullish.
Sell 26,800 for 25,900 with a stop above 27,200.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 15,580
Target price :
This index has been moving within a rising channel since Sep 2020. It tested the upper boundary of the channel since 30 Aug. However, price is now correcting as it didn’t manage to breakout above the channel. We are likely to see a pullback towards 20EMA at 15,440. Stochastic is at the overbought region. MACD is still bullish.
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Recommendation: Long @ 4495
Target price: 4550
Protective stop: 4465
Price has been retracing after being stalled at the all-time high resistance of 4550. It is now testing the 20EMA support of 4493. If price can sustain at this support, a rebound is likely to follow. Else, we are likely to see price testing the lower rising trendline at 4450. Stochastic is falling now. MACD remains bullish.
Buy 4495 for 4550 with a stop below 4465. Entry order was filled on 9 Sep.