- U.S. stock indexes closed modestly higher on Tuesday, with the Dow Jones and S&P 500 hitting fresh records, and gains were subdued as Facebook shares fell 3.92% in the wake of its quarterly earnings after the company warned that Apple’s new privacy changes would weigh on its digital business.
- Data showed U.S. consumer confidence unexpectedly rebounded in October as concerns about high inflation were offset by improving labour market prospects. A Commerce Department report showed sales of new single-family homes surged 14.0% in September.
- Ross Mayfield, investment strategist at Baird in Louisville, Kentucky, said with indexes at or near record levels, a run of good economic data could increase investor concerns the Fed may pull its timeline for a rate hike forward.
- Shares in Asia-Pacific were lower in Wednesday morning trade even as major indexes on Wall Street notched fresh record highs again overnight. Hang Seng index slid 397 points and Nikkei 225 index fell 178 points.
- Oil prices were lower in the morning of Asia trading hours, with international benchmark Brent crude futures slipping 0.28% to $86.16 per barrel. U.S. crude futures dipped 0.32% to $84.38 per barrel.
Dow Jones Index
(CFD Symbol: US30)
Last : 35,754
Price has penetrated its previous resistance high at 35,628. A potential Shooting Star candlestick pattern was formed last night. A possible correction towards 20EMA at 35,180 could happen if price confirms the reversal candlestick pattern. Stochastic is at the overbought region. MACD has turned bullish.
Buy 35,200 for 35,600 with a stop below 34,950.
Hang Seng Index
(CFD Symbol: HK50)
Last : 26,609
A Bearish Engulfing candlestick pattern was formed yesterday, and there is a bearish candle follow-through today. This could hint at possible correction towards the 20EMA at 25,430. A violation of the 20EMA would hint at further decline towards 24,750. Stochastic is falling but MACD is still bullish.
Buy 25,470 with a stop below 25,150 for profit target 26,300.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 15,541
Target price :
This index has been moving within a rising channel since Sep 2020. A potential Shooting Star candlestick pattern was seen last night. If price declines and confirms the reversal candlestick pattern, we are likely to see price pullback towards the 20EMA at 15,230. Stochastic is at the overbought region, MACD has turned bullish.
Buy 15,250 for 15,700 with a stop below 14,950.
S&P 500 Index
(CFD Symbol: US500)
Recommendation: Short @ 4545
Target price: 4460
Protective stop: 4585 Triggered
Price penetrated its previous high resistance zone and has formed a potential Shooting Star candlestick pattern last night. If price declines and confirms the reversal candlestick pattern, a pullback towards the 20EMA at 4480 is likely. Stochastic is at the overbought region, but MACD remains bullish.
Sell 4545 for 4460 with a stop above 4585. Entry price was filled on 25 Oct. Stop was triggered on 26 Oct