- Wall Street ended sharply higher on Tuesday, as Microsoft and Apple spearheaded a strong rebound in growth stocks and investors awaited monthly payrolls data later this week that could influence the U.S. Federal Reserve’s decision on when to scale back monetary stimulus.
- The Senate will vote on Wednesday on a Democratic-backed measure to suspend the U.S. debt ceiling, a key lawmaker said on Tuesday, as partisan brinkmanship in Congress risks an economically crippling federal credit default.
- Adding to concerns the Fed could tighten monetary policy sooner than expected; recent data showed increased consumer spending, accelerated factory activity and elevated inflation.
- Asia Pacific stocks were down on Wednesday morning, as soaring inflation due to increasing energy costs continue to dampen investor sentiment about the economic recovery from COVID-19. Hang Seng index fell 234 points and Nikkei 225 index slid 278 points.
- Worries about China’s property sector continued as regulatory tightening continues. The impact on investor sentiment was demonstrated on Tuesday when representatives of Man Group, Soros Fund Management, and Elliott Management raised concerns about the outlook for Chinese stocks.
Dow Jones Index
(CFD Symbol: US30)
Recommendation : Long @ 34,010
Last : 34,173
Target price: 34,700
Protective stop: 33,750
This index tested the previous low support zone for the third occasion. The 20EMA is acting as resistance at 34,490. There is divergence warning given from the MACD that hints at possible low. Stochastic did not fall to the oversold region either. We could see price penetrating above the 20EMA to move higher.
Buy 34,010 for 34,700 with a stop below 33,750. Entry order was filled on 5 Oct.
Hang Seng Index
(CFD Symbol: HK50)
Last : 23,863
Price is consolidating and being capped by its overhead 20EMA resistance at 24,670, which is also the support-turned-resistance level. Stochastic is still weak and MACD remains bearish. Price could break below its recent low to move lower.
Wait for better trading ideas.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 14,586
Target price :
This index has been moving within a rising channel since Sep 2020. Price is trading at the trendline support, which is also near to the channel support. Stochastic is at the oversold region. There is also divergence warning given from the MACD histogram. We could see a price rebound if price penetrates above 14,770.
Buy 14.250 for 14,850 with a stop below 13,950.
S&P 500 Index
(CFD Symbol: US500)
Price is consolidating at the previous low support zone. The 20EMA is falling and is acting as resistance at 4391. Stochastic is near to the oversold region. MACD remains bearish but there is divergence warning. We are likely to see price moving higher if it able to surpass the 20EMA resistance.
Buy 4300 for 4360 with a stop below 4270