Market News
- U.S. shares were mixed on Tuesday with the tech-heavy Nasdaq losing 1.3%, though rising yields boosted banks and industrial names helped the Dow Jones Industrial Average to a record closing high for a second straight day.
- The Dow Jones index was up 461 points closing at 36,799 while the Nasdaq lost 210 points. The S&P 500 index hit an intraday all-time high at 4816. The S&P 50 Index gained 27 points to close at 4793.
- U.S. yields rose on Tuesday as bond investors geared up for interest rate hikes from the Federal Reserve by mid-year to curb stubbornly high inflation. Benchmark U.S. 10-year treasury yields touched a six-week high on Tuesday and were last at 1.657%
Market Views
- Asian stocks slipped on Wednesday following a mixed Wall Street session as higher U.S. Treasury yields weighed on global tech firms. The Hang Seng index was down 261 points while the Nikkei 225 index was up 9 points at mid-day.
- Minutes from the Fed’s December meeting, due at 1900 GMT, could underscore U.S. policymakers’ newfound sensitivity to inflation and their readiness to tighten policy, which could have a bearing on the US indices direction.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 36,719
Target price:
Protective stop:
Outlook
This index broke above the previous high at 36,565 and as long as this index can stay above the previous high, we are likely to test the Fibonacci 127% price projection target at 37,250. MACD remains bullish and is hinting at a bullish price trend but Stochastic is in the overbought zone, hinting at a limited upside. 20EMA is hinting of a bullish price trend
Trading Idea
Buy 36,500 for 37,200 with a stop below 36,150.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 23,078
Target price:
Protective stop:
Outlook
A 3-black crow candlestick pattern on this index is hinting at a bearish price trend. 20EMA is also hinting at a bearish price trend. However, MACD is showing a divergence, warning of a potential price low. Stochastic is near to the oversold zone, hinting at a limited downside. We think the downside should be limited and we would prefer to wait for a reversal signal for confirmation.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 16,183
Target price :
Protective stop:
Outlook
This index failed to move above its previous high and has fallen below its 20EMA in the previous trading session. This could be a sign that this index could be heading lower to the Fibonacci 50% correction point at 15.773 in the next few days. Stochastic is supporting this view after a bearish crossover, which is hinting at a price decline. MACD and 20EMA are both hinting at a bearish price trend
Trading Idea
Sell 16,490 with a stop above 16,700 for 15,850.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4777
Target price:
Protective stop:
Outlook
This index has broken above its previous all-time high and could be heading higher as long as it stays above the previous high. 20EMA is supporting this view. MACD is also supporting this bullish view but Stochastic is hinting at a limited upside. A move below the 20EMA would hint at a price move to 4625
Trading Idea
Wait for better trading idea
