- Wall Street shares were mixed on Tuesday as investors positioned for interest rate hikes in 2022 after Federal Reserve Chairman Jerome Powell was nominated for a second term. Rising U.S. Treasury yields also weighed on Wall Street’s sentiment.
- The Nasdaq index ended lower for a second straight session, dropping by 79 points while the rest of Wall Street was mixed. The S&P 500 index eked out a gain on Tuesday, rising by 7 points while the Dow Jones index gained 197 points.
- Higher Treasury yields weighed on major U.S. technology stocks, pressuring the tech-heavy Nasdaq. Bank shares extended the previous day’s gains, limiting losses elsewhere and pulling up the Dow Jones index and the S&P 500 index.
- Share markets were jittery in early Asia on Wednesday as investors weigh the risk that central banks will tighten monetary policy to curb inflation. Gains in U.S. Treasury yields as well as volatile oil prices helped to send the Hang Seng Index lower by 15 points while the Nikkei 225 declined by 524 points.
- New Zealand’s central bank lifted interest rates for the second time in as many months on Wednesday, driven by rising inflationary pressure and as an easing of coronavirus restrictions supported economic activity. Many other central banks are likely to follow suit in the coming months.
Dow Jones Index
(CFD Symbol: US30)
Last : 35,739
This index reached a low of 35,419 overnight, which was just below the previous resistance turned support line. Stochastic is hinting at price rally. MACD remains bullish and is hinting at a bullish price trend. 20EMA is currently capping this index at 35,825.This index may have reached a low and a reversal in price trend to test the high at 36,565 is likely in the next couple of weeks.
Buy 35,450 for 36,000 with a stop below 35,200.
Hang Seng Index
(CFD Symbol: HK50)
Last : 24,691
This index has continued to move lower after hitting the high at 25,819. We are likely to see a test of the previous low at 24,515 in the coming days. 20EMA has turned bearish. Stochastic continues to decline. MACD is neutral at the moment. As long as this index stays above 24,200, there is still a chance to see 25,819 again
Buy 24.550 with a stop below 24,100 for 25,100
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 16,278
Target price :
This index has been declining after hitting an all-time high at 16,767. We think the decline is just a correction and not a new bear trend as long as this index stays above 15,700. Stochastic is declining after a bearish crossover near the overbought zone. MACD remains bullish but there is a divergence warning. 20EMA is currently supporting price at 16,148.
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
This index has been declining for the past two days after creating a new all-time high at 4744. We believe this decline is a correction and not a new bearish trend as long as this index stays above 4550. The 20EMA remains bullish. Stochastic is declining after a bearish crossover in the overbought region. MACD remains bullish but has given a divergence warning of a possible price high
Buy 4620 for 4740 with a stop below 4550