Market News
- U.S. stocks ended sharply lower in a broad sell-off on Friday, ending a week buffeted by strong economic data, corporate tax hike worries, and the Delta COVID variant and possible shifts in the U.S. Federal Reserve’s timeline for tapering asset purchases.
- Inflation is likely to be a major issue next week, when the Federal Open Markets Committee holds its two-day monetary policy meeting. Market participants will be watching closely for changes in nuance which could signal a shift in the Fed’s tapering timeline.
- U.S. Treasury Secretary Janet Yellen warned that the U.S. government will run out of money to pay its bills around October time without action on the debt ceiling. She also called on lawmakers to take the necessary steps to avert an “economic catastrophe”.
Market Views
- Asian shares slid on Monday morning packed with no less than a dozen central bank meetings, highlighted by the Federal Reserve which is likely to take another step toward tapering. Hang Seng index slumped 1,007 points while Japan is in a holiday.
- Concerns about the health of China’s economy and Beijing’s crackdown on tech firms continues to haunt the region, with stocks in Hong Kong skidding more than 3% to their lowest in almost 11 months.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 34,286
Target price:
Protective stop:
Outlook
Price broke below the previous low support zone of 34,560 today with a bearish candle. With the bearish hint given from the 20EMA, we are likely to see price continuing diving towards 33,730. Stochastic is at the oversold region but continue moving lower. MACD is bearish now.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation : Long @24,800
Last : 23,394
Target price: 25,800
Protective stop: 24,400 Triggered
Outlook
Price violates the previous low support zone today with a bearish long candle. This is a sign of weakness and the bearish trend could continue. The 20EMA is also bearish now. We could see price moving lower towards 22,960. Stochastic is falling now. MACD remains bearish.
Trading Idea
Buy 24,800 with a stop below 24,400 for 25,800. Entry was filled on 17 Sep. Stop was triggered on 20 Sep.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 15,252
Target price :
Protective stop:
Outlook
This index has been moving within a rising channel since Sep 2020. It violates the 20EMA support and is now going to test the resistance-turned-support zone at 15,180. If price can stay firm at this support, we are likely to see a rebound and vice versa. Stochastic is moving lower. MACD has turned bearish with the fast line below the zero line.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4399
Target price:
Protective stop:
Outlook
Price broke below the rising channel last Friday with a bearish candle. This is a sign of weakness and point for more downside towards the next support zone at 4230. Stochastic is still weak. MACD has turned bearish with the fast line below the zero line.
Trading Idea
Buy 4440 with a stop below 4410 for 4510. Entry was filled on 17 Sep. Stop was triggered on 20 Sep.
