- U.S. stocks ended a whipsaw session slightly lower on Thursday, as investors juggled signs of peaking inflation with fears that it could remain elevated, prompting ever more aggressive tightening from the Fed.
- The Producer Prices report released before the opening bell, suggested price growth reached its zenith in March. U.S. released the Initial Jobless Claims on Thursday, which rose to 203,000 last week. It was above the previous week number of 202,000.
- Fed is expected to hike key interest rates by at least 50 basis points at least three times in the coming months to toss cold water on demand and rein in soaring prices. But the Fed Chair said Thursday that getting inflation under control won’t be easy and warned he could not promise a so-called soft landing for the economy.
- Asia Pacific stocks gained in Friday morning as investors worried that high inflation would continue, which drove central banks to further tighten monetary policies. Hang Seng index rose 387 points and Nikkei 225 index advanced 648 points.
- Oil prices were higher in the morning of Asia trading hours, with international benchmark Brent crude futures up 1.52% to $109.08 per barrel. U.S. crude futures climbed 1.36% to $107.57 per barrel.
Dow Jones Index
(CFD Symbol: US30)
Price violated its previous low support zone. It appears to rebound and could form a bullish candle today. Stochastic is in the oversold zone and MACD is turning up. We could see price rebounding to the 20EMA resistance point at 33,000.
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Price is currently consolidating at this previous low support zone. This could be a temporary bottom, and we could see price moving higher to 21,300 if it hold above this support zone. Stochastic is in the oversold zone and MACD is turning up with divergence warning.
Buy 19,550 for 20,250 with a stop below 19,200.
Nasdaq 100 Index
(CFD Symbol: USTec)
This index has reached the Fibonacci 200% projection level. This could be a temporary bottom and we could see price rebounding to the 20EMA at 12,920. Stochastic is in the oversold zone and it turning up. A bullish MACD crossover is likely.
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Recommendation: Long @ 4015
Target price: 4100
Protective stop:3940 Triggered
Price is rebounding after forming a temporary bottom at 3858 last night. If price hold above this low, we see price moving higher to the 20EMA at 4150. Stochastic is in the oversold zone and MACD is turning up.
Buy 4015 for 4100 with a stop below 3940. Entry and stop were both filled on 11 May