Market News
- U.S. stocks ended near flat on Tuesday after a broad sell-off the day before, with worries over troubles at developer China Evergrande and caution ahead of Wednesday’s Fed policy news keeping a lid on the market. Shares of Walt Disney fell 4.2% and were the biggest drag on both S&P 500 and Dow.
- Evergrande missed interest payments due Monday as expected to at least two of its largest bank creditors, Bloomberg reported on Tuesday. The next test looms on Thursday when the firm is due to pay $83.5 million in interest on bonds — failure to do so within 30 days would put the bonds in default.
- Investors will look for signs of intervention by government to prevent a disorderly default by property company Evergrande. Market turmoil surrounding the developer intensified in the past trading sessions as investors interpreted government’s silence hitherto on the distressed firm as a lack of official support, said DBS Bank.
Market Views
- Asian stock markets were lower on Wednesday morning amid lingering nerves about the fallout from a looming failure at developer China Evergrande and anticipation the Fed may move a step closer to tapering. Nikkei 225 index fell 184 points while Hong Kong is closed for a holiday.
- Oil prices were higher in the morning of Asia trading hours, with international benchmark Brent crude futures up 0.67% to $74.86 per barrel. U.S. crude futures gained 0.79% to $71.05 per barrel.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 33,997
Target price:
Protective stop:
Outlook
Price violated its support zone of 34,560 with a bearish candle two days ago. It is now trading near to its next support zone of 33,736. There is no sign of rebound yet. 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 :
Last : 24,139
Target price:
Protective stop:
Outlook
Price violates the previous low support zone two days ago 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 at the oversold region. MACD remains bearish.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 15,043
Target price :
Protective stop:
Outlook
This index has been moving within a rising channel since Sep 2020. It violates the 20EMA and is now sitting at the triangle support. A further violation of this support will bring price lower to 14,480. Stochastic is moving lower. MACD has turned bearish with the fast line below the zero line
Trading Idea
Buy 15,000 for 15,650 with a stop below 14,800.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4360
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 4330 with a stop below 4300 for 4410
