Market News
- Wall Street ended lower on Tuesday after data showed producer prices increased more than expected in November, solidifying expectations the Federal Reserve this week will announce a faster wind-down of asset purchases.
- The S&P 500 index was down by 34 points to 4634, after hitting an all-time closing high late last week at 4713. The Dow Jones Index was down by 106 points while the NASDAQ index was lower by 175 points ahead of FOMC policy decision later tonight.
- Data from the Labour Department showed the producer price index (PPI) for final demand in the 12 months through November shot up 9.6%, clocking its largest gain since November 2010. That followed an 8.8% increase in October.
Market Views
- Asian markets was mixed on Wednesday as the world waited to hear from the U.S. Federal Reserve on when it would stop buying assets and start raising interest rates, possibly piling pressure on its peers to follow. The Hang Seng index was up by 12 points while the Nikkei 225 index gained 14 points.
- The Federal Reserve is expected to announce it will wrap up its bond buying stimulus sooner than previously communicated, potentially setting up earlier interest rate increases next year after its policy meeting later tonight.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 35,590
Target price:
Protective stop:
Outlook
The 20EMA is currently supporting this index following a decline after reaching a high 3 days ago. If this index can stay above the 20EMA, it can move higher to test the previous high of 36,565 again. If it fall below the 20EMA, it is likely to test the Fibonacci 50% correction point at 35,040. Stochastic is hinting at a price decline. MACD is bearish but 20EMA is bullish.
Trading Idea
Buy 35,400 for 36,550 with a stop below 35,050.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 23,667
Target price:
Protective stop:
Outlook
This index failed to move above its 20EMA and has declined close to its previous low at 23,185. 20EMA is bearish and is hinting at a bearish price trend. Stochastic has a bearish crossover and is hinting at a bearish price trend. MACD is bearish and is hinting at a bearish price trend. This index is likely to test the previous low of 23,185 in the next few days.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 15,935
Target price :
Protective stop:
Outlook
Yesterday’s decline has sent the index below its 20EMA line. However, this index has managed to stay above its previous low support, keeping the bullish trend intact. Stochastic is hinting at a bearish trend. MACD and 20EMA has both turned bearish and hinting at a bearish price trend
Trading Idea
Buy 16,150 for 16,750 with a stop below 15,800. Entry order was filled on 13 Dec. Stop was triggered on 14 Dec
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4642
Target price:
Protective stop:
Outlook
This index has moved off its low at 4493 and could be heading towards its previous high at 4744. However, this index did not managed to test is previous high but has now moved below its 20EMA, hinting at a bearish price trend. Stochastic has a bearish crossover and is hinting at a bearish price trend. MACD has turned bearish and is hinting of a bearish price trend ahead
Trading Idea
Wait for better trading idea
