Market News
- Wall Street gyrated wildly on Thursday with S&P 500 once again avoiding correction confirmation at the end of a session marked by a rally, selloff and recovery as investors juggle positive economic news with mixed corporate earnings, geopolitical unrest and the prospect of a more hawkish Fed.
- Markets seesawed following the release on Wednesday of the FOMC statement, which left key interest rates near zero, and Fed Chair Jerome Powell’s subsequent Q&A session during which he appeared to raise the possibility of more rate hikes this year than previously expected, beginning in March.
- Geopolitical tensions simmered, as Russia continues to build up troops along the Ukrainian border as diplomats scramble to avoid conflict in the region
Market Views
- Asia Pacific markets were mixed on Friday morning; clawing back some of the losses from the previous two days that were driven by the U.S. Fed signal of a tighter monetary policy. Hang Seng index fell 237 points while Nikkei 225 index advanced 541 points.
- U.S. data released on Thursday showed the GDP grew a better-than-expected 6.9% quarter-on-quarter in the fourth quarter of 2021, core durable goods orders grew 0.4% month-on-month in December, while Americans filed 260,000 initial jobless claims over the past week.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 34,305
Target price:
Protective stop:
Outlook
This index has been consolidating near its previous low support zone. A long-legged Hammer candlestick pattern was formed, hinting at potential price rebound. We could see price testing the 20EMA at 35,080. Stochastic is rising from the oversold region but MACD remains bearish.
Trading Idea
Buy 34,150 for 35,000 with a stop below 33,600.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 23,606
Target price:
Protective stop:
Outlook
This index corrected after a one-day rally on 20 Jan. It violated the 20EMA two days ago after gapping down. 20EMA had turned bearish. Stochastic is falling now and MACD has turned bearish. Price is likely to head lower towards its previous low at 22,710.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 14,136
Target price :
Protective stop:
Outlook
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 able to penetrate and close above 14,511.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4348
Target price:
Protective stop:
Outlook
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 4517 is likely if price able to penetrate and close above 4414. Stochastic is at the oversold region and MACD remains bearish.
Trading Idea
Buy 4310 with a stop below 4265 for 4430
