Market News
- Wall Street jumped on Thursday after optimistic retail earnings outlooks and waning concerns about overly aggressive interest rate hikes by the Fed put investors in a buying mood. Dow Jones surged 708 points, S&P 500 was up 116 points and Nasdaq Composite gained 305 points.
- The minutes from the Federal Open Market Committee’s most recent monetary policy meeting calmed fears that the U.S. central bank could turn more hawkish, a concern which has fed into market volatility in recent weeks.
- Economic data released on Thursday, including jobless claims, pending home sales and GDP, brought good news wrapped in bad, suggesting the economy is showing just enough softness to prompt a dovish pivot from the Fed by autumn.
Market Views
- Asia Pacific markets extended overnight global gains thanks to strong results from regional tech firms and U.S. retailers. Hang Seng index advanced 568 points and Nikkei 225 index rose 157 points.
- U.S. will not block China from growing its economy, but wants it to adhere to international rules, Secretary of State Antony Blinken said on Thursday in remarks that didn’t come as a surprise to investors and political analysts.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 32,597
Target price:
Protective stop:
Outlook
This index penetrated and closed above the 20EMA last night with a bullish candle. It is going to test its recent price high resistance and if this resistance is broken, we see price turning around and moving higher. Both MACD and Stochastic are rising.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 20,681
Target price:
Protective stop:
Outlook
Price is currently consolidating within a rectangle pattern. Both Stochastic and MACD are bullish and are rising, hinting at potential breakout ahead, and we are likely to see price penetrating above the upper boundary of the rectangle to move higher.
Trading Idea.
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 12,261
Target price:
Protective stop:
Outlook
This index rebounded after trading near to its previous low support zone. MACD is forming divergence warning that hints at possible bottom. Both MACD and Stochastic are rising; we are likely to see price breaking above the 20EMA to move higher.
Trading Idea
Buy 11,750 for 12,500 with a stop below 11,400.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4053
Target price:
Protective stop:
Outlook
Price is testing its overhead 20EMA resistance point after rebounding near to its previous low support zone. Both Stochastic and MACD are hinting at possible bottom. We are likely to see price breaking above the 20EMA to move higher.
Trading Idea
Buy 3970 with a stop below 3905 for 4130.
