Market News
- Wall Street ended lower after a volatile session on Thursday, with Cisco Systems slumping 13.7% after giving a dismal outlook, while investors fretted about inflation and rising interest rates. Dow Jones fell 236 points, S&P 500 was down 22 points and Nasdaq Composite lost 29 points.
- Goldman Sachs strategists predicted a 35% chance of the U.S. economy entering a recession in the next two years, while the Wells Fargo Investment Institute expects a mild U.S. recession at the end of 2022 and early 2023.
- China cut its five-year loan prime rate by 15 basis points on Friday morning, a sharper cut than had been expected, as authorities seek to cushion an economic slowdown, though it left the one-year LPR unchanged. The five-year rate influences the pricing of mortgages.
Market Views
- Asian shares jumped on Friday morning after China cut a key lending benchmark to support a slowing economy, but a gauge of global equities remained set for its longest weekly losing streak on record amid investor worries about sluggish growth. Hang Seng index advanced 382 points and Nikkei 225 index gained 309 points.
- On Friday, China’s financial hub of Shanghai announced three new COVID-19 cases outside of quarantined areas, throwing a wrench in the city’s hopes for an exit from its strict, weeks-long lockdown.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 31,413
Target price:
Protective stop:
Outlook
Price was capped by the falling 20EMA, leading to its falls and its violation of its previous low support. However, there is potential divergence warning given from MACD that hints of possible bottom. If price can form a reversal candlestick pattern, we see price rebounding to test the 20EMA again.
Trading Idea
Buy 31,150 for 32,500 with a stop below 30,700.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 20,509
Target price:
Protective stop:
Outlook
Price rebounded from a low at 19,162. It is now testing its overhead downtrend line that capped price’s rally for a third times this round. It has to surpass this downtrend line for uptrend. Stochastic is rising but MACD is bearish.
Trading Idea.
Buy 19,550 for 20,250 with a stop below 19,200.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 11,982
Target price:
Protective stop:
Outlook
This index was capped by the 20EMA and is trading at its previous low support zone. MACD is giving potential divergence warning that hints of possible bottom. If price can maintain at this support level, we see price breaking out from the 20EMA to move higher.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3926
Target price:
Protective stop:
Outlook
Price is currently trading at its previous low support zone after being capped by the 20EMA resistance. MACD is giving potential divergence warning that warns of possible price low. If price able to maintain at this support level, we see price breaking out from the 20EMA to move higher.
Trading Idea
Wait for better trading idea.
