Market News
- The Nasdaq ended sharply lower, falling by 385 points or 2.47% a day the Federal Reserve’s announcement of a faster end to its pandemic-era stimulus and signaled a three quarter-percentage-point interest rate hikes by the end of 2022, pushed investors away from Big Tech and toward more economically sensitive sectors.
- The S&P 500 slipped 41 points on Thursday, as a rout in big tech more than offset a rise in cyclicals. The Dow Jones Industrial Average fell 0.08% to end at 35,897.64.
- Data showed the number of Americans filing new claims for unemployment benefits increased moderately last week, while a survey showed production at U.S. factories increased to the highest level in nearly three years in November.
Market Views
- Asian stock markets fell sharply on Friday after a rush of central bank meetings underlined the growing threat posed by a spike in global inflation, while fears about the omicron variant of COVID-19 added to a cautious mood. Hang Seng Index was down 300 points while the Nikkei 225 index declined by 472 points.
- The U.S. government put investment and export restrictions on dozens of Chinese companies on Thursday, including top drone maker DJI, accusing them of complicity in the oppression of China’s Uyghur minority or helping the military, further ratcheting up tensions between the world’s top two economies.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation : Long @ 35,400
Last : 35,837
Target price: 36,550
Protective stop: 35,050
Outlook
A Doji candlestick price pattern is hinting at a possible decline down to the 20EMA at 35,585. If it fall below the 20EMA, it is likely to test the Fibonacci 50% correction point at 35,050. If this index can stay above the 20EMA, we can see another test of 36.567. Stochastic is in the overbought zone and is hinting at a price decline. MACD is bearish and hinting at a price decline but 20EMA remains bullish.
Trading Idea
Buy 35,400 for 36,550 with a stop below 35,050. Entry order was filled on 15 Dec.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 23,234
Target price:
Protective stop:
Outlook
This index is testing its previous low again and we think it is likely to move lower to the next support point at 22,546. Stochastic has a bearish crossover and is hinting at a bearish price trend. MACD is bearish but a possible divergence warning may be forming. 20EMA is bearish and is hinting at a strong bearish price trend.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 15,843
Target price :
Protective stop:
Outlook
This index is testing its previous low again and we think it is likely to move lower to the next support point at 22,546. Stochastic has a bearish crossover and is hinting at a bearish price trend. MACD is bearish but a possible divergence warning may be forming. 20EMA is bearish and is hinting at a strong bearish price trend.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4661
Target price:
Protective stop:
Outlook
This index created a new high at 4751 two days ago but this high was accompanied by a divergence warning from both the Stochastic and the MACD indicators. This index could be heading lower to 4600. 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
