Market News
- Wall Street ended higher on Tuesday after a choppy session in which each of the major indexes fluctuated between gains and losses as a key meeting of the Fed got under way. Dow Jones rose 67 points, S&P 500 was up 20 points and Nasdaq Composite gained 27 points.
- U.S. central bank kicked off its two-day policy meeting on Tuesday. Investors expect the Fed to hike rates by half a percentage point on Wednesday, and to detail plans to reduce its $8.9 trillion balance sheet.
- Oil slipped as concerns about demand due to China’s prolonged COVID lockdowns outweighed support from a possible European oil embargo on Russia over the war in Ukraine.
Market Views
- Asian stocks fell on Wednesday morning with investors looking ahead to the U.S. Federal Reserve’s interest rate decision expected later stateside. Hang Seng index slid 232 points. Japan market is shut for holiday today.
- In Hong Kong, shares of Alibaba earlier fell more than 9% on worries over the status of its billionaire founder Jack Ma as unconfirmed rumors that linked the company’s founder Jack Ma to a national security investigation.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 33,138
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
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 20,886
Target price:
Protective stop:
Outlook
Price is hovering around the 20EMA after the rebound. As long as the recent low of 19,622 holds, there is chance for this index testing its previous high at 22,680 again. Stochastic is rising and MACD has turned bullish.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 13,114
Target price:
Protective stop:
Outlook
This index slightly violated 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: Long @ 4140
Last: 4179
Target price: 4290
Protective stop: 4090
Outlook
This index is currently trading at its previous low support zone. A Hammer reversal candlestick pattern was formed two nights ago, hinting at a possible corrective rebound towards the 20EMA at 4300. Stochastic is at the oversold region and MACD is giving divergence warning.
Trading Idea
Buy 4140 with a stop below 4090 for target at 4290. Entry order was filled on 2 May.
