Market News
- Wall Street ended sharply lower on Thursday and the S&P 500 posted its worst month since the onset of the global health crisis, following a tumultuous month and quarter wracked by concerns over COVID-19, inflation fears and budget wrangling in Washington.
- The U.S. Senate and House approved a stopgap spending bill to keep the government running late in the session, but after a brief market uptick, stocks resumed their decline, dragging even the Nasdaq into the red after trending higher most of the day.
- Fed Chair Jerome Powell, along with Treasury Secretary Janet Yellen, testified before the U.S. House Committee on Financial Services, even as wrangling continued on Capitol Hill over funding the government in the face of a looming deadline and the threat of potential shutdowns and credit default.
Market Views
- Asian markets followed Wall Street sharply lower on Friday morning as risk sentiment soured amid growing worries that inflation may persist even after global growth has peaked. Hang Seng index fell 87 points and Nikkei 225 index slid 590 points.
- China has proved a particular worry for investors, hit by regulatory curbs in the tech and property sectors, and now grappling with a power shortage that threatens to push up energy prices globally.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 33,676
Target price:
Protective stop:
Outlook
This index is testing the previous low support zone for the third occasions. The 20EMA is falling, showing a bearish price trend. Stochastic is falling now. MACD is still bearish and having a bearish crossover. With all these bearish signs, price is likely to violate the support zone and move lower.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 24,588
Target price:
Protective stop:
Outlook
Price is consolidating and is on its way to testing its overhead 20EMA resistance at 24,890. If price can penetrate above the 20EMA, we are likely to see price moving higher towards 26,890. Stochastic is at the oversold region. MACD remains bearish but just had a bullish crossover.
Trading Idea
Sell 24,950 with a stop above 25,200 for 24,100.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 14,620
Target price :
Protective stop:
Outlook
This index has been moving within a rising channel since Sep 2020. Price further violates its support low and is heading lower towards the lower channel support at 14,350. Stochastic is falling now. MACD is still bearish
Trading Idea
Buy 14.250 for 14,850 with a stop below 13,950.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend:
Recommendation:
Last: 28,887
Target price:
Protective stop:
Outlook
Price has been on a decline after hitting its previous resistance high at 30,723. It violates the 20EMA support and has formed lower highs and lower lows, which is the characteristic of a bearish price trend. The next support lies at 28,360, which is the Fibonacci 62% correction point and the channel support. Stochastic is falling now. MACD has turned bearish.
Trading Idea
Wait for better trading idea.
