Market News
- U.S. three major indexes slid on Tuesday, following a rally last week, as volatile oil markets kept soaring inflation in focus and investors reacted to hawkish comments from a Fed official. The Dow lost 222 points, S&P 500 was down 26 points and Nasdaq Composite fell 49 points.
- Fed Governor said on Monday the U.S. central bank should be prepared to raise rates by a half percentage point at every meeting from now on until inflation is decisively curbed. President Biden and Fed Chair Powell met on Tuesday to discuss inflation, which Biden said ahead of the meeting was his “top priority.”
- Data showed U.S. consumer confidence eased modestly in May amid persistently high inflation and rising rates, while a separate reading showed U.S. home price growth unexpectedly heated up to record levels in March.
Market Views
- Asia Pacific stocks were mixed on Wednesday morning as easing lockdowns in China offer some hope for the economic outlook. Hang Seng index fell 186 points while Nikkei 225 index gained 192 points.
- Oil prices were higher due to the agreement by the European Union for a ban on most Russian oil imports by the end of the year, along with investor optimism over a reopening in the major Chinese city of Shanghai following weeks of Covid-related lockdowns.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 33,156
Target price:
Protective stop:
Outlook
This index managed to stay above the 20EMA, which is also the previous resistance price high level, showing the bullish outlook. Both MACD and Stochastic are rising and bullish. As long as price stay above 20EMA, we see price continuing to move higher.
Trading Idea
Buy 32,670 for 33,650 with a stop below 32,150.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 21,283
Target price:
Protective stop:
Outlook
Price broke above the rectangle consolidation zone, showing the bullish outlook of this index. The 20EMA is rising, confirming the uptrend. Both MACD and Stochastic are rising and bullish, we see price continuing to move higher as long as it stay above the 20EMA.
Trading Idea.
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 12,675
Target price:
Protective stop:
Outlook
This index rebounded after trading near to its previous low support zone. It is now sitting above the 20EMA support. As long as the 20EMA holds, we see price moving higher with both Stochastic and MACD are bullish and are rising.
Trading Idea
Buy 12,400 for 13,500 with a stop below 12,100.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4145
Target price:
Protective stop:
Outlook
Price is currently having a slight pullback after rebounding from its previous low support zone. As long as price stay above the 20EMA, we see price resuming its upward momentum to move higher. Both MACD and Stochastic are bullish and are rising.
Trading Idea
Wait for better trading idea
