Market News
- S&P 500 and Nasdaq gained on Tuesday, with big growth shares rising after the previous day’s selloff as Treasury yields tumbled. However, the Dow closed lower in the choppy session as investors were nervous ahead of the coming economic reports.
- U.S. President Biden in a speech Tuesday addressing high inflation said he was considering eliminating Trump-era tariffs on China as a way to lower prices for goods in U.S. Cleveland Fed President Loretta Mester said U.S. economy will experience turbulence from the Fed’s efforts to bring down inflation running at more than three times above its goal.
- Strict curbs to combat the coronavirus have weighed on China’s economy. As of Tuesday, 41 Chinese cities are currently implementing full or partial lockdowns or some kind of district-based control measures, estimates by Nomura analysts showed.
Market Views
- Asia Pacific stocks advanced on Wednesday morning as investors digested the latest inflation data from China while also awaiting U.S. data that could provide clues as to whether price pressures are peaking. Hang Seng index gained 263 points and Nikkei 225 index rose 71 points.
- Oil was below the $100 mark after dropping around 10% this week as growth concerns over China’s COVID-19 lockdowns sap crude and metals. Ukraine and Russia also clashed over natural gas sent via pipelines to Europe that could disrupt supplies in the continent, causing those prices to climb as well.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 32,235
Target price:
Protective stop:
Outlook
Price has reached its previous low support zone two days ago. Stochastic is in the oversold zone and MACD could be turning down, hinting that this low could be a possible temporary bottom. If price holds above this zone, we see price rebounding to test the 20EMA at 33,350.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 19,874
Target price:
Protective stop:
Outlook
Price could be in the process of forming a reversal candlestick pattern, the Morning Star pattern, today. If this pattern is confirmed tomorrow, we see price rebounding and moving to the first resistance point at 21,300. Stochastic is still strong and MACD is giving divergence warning.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 12,440
Target price:
Protective stop:
Outlook
This index has reached the Fibonacci 161% projection level. It could have formed a potential Bullish Harami reversal candlestick pattern. If a confirming candle is formed today, we see price moving to 13,160. Stochastic is in the oversold zone and MACD is giving divergence warning.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4017
Target price:
Protective stop:
Outlook
Price formed a Doji candlestick pattern last night. If a confirming candle is formed tonight, we see price moving to the 20EMA at 4200. Stochastic is near to the oversold zone and MACD is giving divergence warning.
Trading Idea
Buy 4015 for 4100 with a stop below 3940
