Market News
- Wall Street advanced on Thursday after a strong quarterly report from Meta Platforms lifted beaten down technology and growth stocks and offset worries about the U.S. economy’s contraction in the first quarter.
- U.S. economy unexpectedly contracted in the first quarter as COVID-19 cases surged again. The first decrease in gross domestic product since the short and sharp pandemic recession nearly two years ago was mostly driven by a wider trade deficit as imports surged, and a slowdown in the pace of inventory accumulation.
- The GDP figure emphasized the debate on how much the Fed can tighten monetary policy without impacting economic growth. Investors now await the Fed’s latest policy decision.
Market Views
- Asia Pacific stocks were down on Friday morning as U.S. equity futures fell after post-earnings falls in Amazon and Apple shares dampened some of the optimism from a Wall Street rally. Hang Seng index fell 151 points while Japan market is closed for a holiday today.
- The Ukraine war, China’s COVID lockdowns and surging inflation have weighed on the outlook for the global economy, sparking volatility ahead of the Fed’s May meeting next week. Fed watchers expect a 50-basis-point rate hike.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 33,939
Target price:
Protective stop:
Outlook
Price slightly rebounded for the past two days. However, if price cannot break above the neckline of the Double Top pattern and 20EMA, we see price falling towards its previous low support zone at 32,340. Stochastic is at the oversold region and MACD is bearish.
Trading Idea
Sell 34,100 for 32,600 with a stop above 34,500.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 20,079
Target price:
Protective stop:
Outlook
Price continued to fall with no sign of recovery as yet. The 20EMA is falling, confirming the downtrend. Stochastic is at the oversold region and MACD is bearish. A corrective rally towards 20EMA is possible if price shows reversal sign.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 13,291
Target price:
Protective stop:
Outlook
This index is currently trading at its previous low support zone. Stochastic is at the oversold region and MACD histogram is showing sign of divergence warning. A corrective rally towards the 20EMA is likely, but price has to move above the 20EMA for more upside.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4266
Target price:
Protective stop:
Outlook
This index is currently trading at its previous low support zone. A corrective rally towards the 20EMA is likely, but price has to move above the 20EMA for more upside. Stochastic is at the oversold region but MACD is bearish.
Trading Idea
Buy 4140 with a stop below 4090 for target at 4290.
