Market News
- Wall Street lost ground on Tuesday with all three major U.S. stock indexes ended in negative territory as economic uncertainties and the increasing likelihood of a corporate tax rate hike dampened investor sentiment and prompted a broad sell-off despite signs of easing inflation.
- The CPI report delivered a lower-than-consensus August reading, a deceleration that supports Federal Reserve Chairman Jerome Powell’s assertion that spiking inflation is transitory and calms market fears that the central bank will begin tightening monetary policy sooner than expected.
- The long expected corporate tax hikes, to 26.5% from 21% if Democrats prevail, are coming nearer to fruition with U.S. President Joe Biden’s $3.5 trillion budget package inching closer to passage.
Market Views
- Asian shares fell on Wednesday morning as weak Chinese economic data reinforced worries about slowing growth globally as well as in the world’s second-biggest economy fraught nerves over a still-dominant pandemic and tapering of central banks’ stimulus. Hang Seng index slumped 242 points and Nikkei 225 index fell 171 points.
- A burst of data out of China showed businesses were grappling with the impact of localized lockdowns following sporadic COVID-19 outbreaks, supply bottlenecks and high raw materials costs.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 34,664
Target price:
Protective stop:
Outlook
Price has been moving lower after breaking below both the 20EMA support and the rising trendline. The 20EMA is now bearish, and is testing the previous low at 34,560. If price can’t rebound at this level, we are likely to see further price decline towards 33,730. Stochastic is falling now. MACD has turned bearish with the fast line below the zero line.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 25,683
Target price:
Protective stop:
Outlook
Price was resisted near the key resistance zone of 26,890. It has now moved below the 20EMA support of 25,960. We are likely to see price falling to its low at 24,753 again. Stochastic is falling now. MACD is still bearish and had a bearish crossover.
Trading Idea
Buy 24,800 with a stop below 24,400 for 25,800
Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 15,450
Target price :
Protective stop:
Outlook
This index has been moving within a rising channel since Sep 2020. It has been correcting after being resisted by the upper boundary of the channel since 30 Aug. Price is now sitting at the 20EMA support at 15,420. If price could not rebound from this support, there is chance for this index continues its fall towards 15,180. Stochastic is falling now. MACD is still bullish.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4452
Target price:
Protective stop:
Outlook
Price has been retracing after being stalled at the all-time high resistance of 4550. It is now trading near the lower boundary of the channel support and this could be a good chance for long entry if price can form a bullish reversal candlestick pattern at the channel support. Stochastic is falling now. MACD remains bullish.
Trading Idea
Buy 4440 with a stop below 4410 for 4510
