- S&P 500 fell 1.2% but closed above session lows on Tuesday as its attempts to stage another intraday turnaround, which ultimately faded as tech stocks came under renewed pressure ahead of the Federal Reserve’s monetary policy update.
- Fed kicks off its two-day meeting on Tuesday. While the Fed is expected to keep its benchmark rate on hold, investors are waiting with bated breath to discover whether the recent pricing in of a more aggressive tightening of monetary policy is warranted.
- In anticipation of a hawkish tone on policy from the Fed, U.S. bonds yields were on the rise, with U.S. 10-year yield briefly flirting with 1.8%, boosting rate-sensitive sectors like banks and should benefit cyclical stocks like energy as well.
- Asian markets were mixed on Wednesday, after another volatile Wall Street session, as investors braced for the outcome of the Fed’s meeting and any hints about faster tightening of monetary policy. Hang Seng index rose 31 points while Nikkei 225 index fell 107 points.
- U.S. crude fell 0.4% on Wednesday to $85.26 per barrel and Brent crude eased 0.16% to $88.04 per barrel. Spot gold added 0.1% to $1,848.41 an ounce, having hit a two month high overnight as investors sought safety.
Dow Jones Index
(CFD Symbol: US30)
Last : 34,251
This index has hit its previous low support zone two nights ago and a long-legged Hammer candlestick pattern was formed, hinting at potential price rebound. The falling 20EMA is hinting at the bearish price trend. Stochastic is at the oversold region and MACD remains bearish. We could see a price rebound towards the 20EMA at 35,260 if price penetrate and close above 34,440
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Long @ 24,570
Last : 24,323
Target price: 25,710
Protective stop: 24,100
This index had a correction after a one-day rally on 20 Jan. It is currently sitting at the 20EMA support at 24,148. If price can hold at 20EMA support, we are likely to see price rallying towards its recent high again. Both Stochastic and MACD are strong and bullish.
Look to buy at 24,570 for 25,710 with a stop below 24,100. Entry and stop were triggered on 24 Jan.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 14,165
Target price :
This index has been on a sharp decline after violating its previous low support level. A long-legged Hammer candlestick pattern was formed on 24 Jan. Stochastic is at the oversold region and MACD remains bearish. Price could rebound towards 20EMA at 15,200 if it is able to penetrate and close above 14,511.
Sell 14,500 with a stop above 14,950 for 13,800.
S&P 500 Index
(CFD Symbol: US500)
Price has been on a decline after violating a rising trendline. The 20EMA is falling, hinting at a bearish price trend. A long-legged Hammer candlestick pattern was formed on 24 Jan after hitting its previous low support zone. A possible price rally towards 20EMA at 4555 is likely if price able to penetrate and close above 4414. Stochastic is at the oversold region and MACD remains bearish.
Wait for better trading idea.