Market News
- U.S. stocks rallied late on Tuesday to end higher for a second straight day as technology and energy shares gained, while Target Corp’s warning about excess inventory weighed on retail stocks for much of the session.
- U.S. consumer price index (CPI) on Friday will be closely watched for more clues on the interest rate hike path. It is expected to show that inflation remained elevated in May though core consumer prices, which exclude the volatile food and energy sectors, likely ticked down on an annual basis.
- The World Bank reduced its estimate for global growth this year to 2.9% from a January prediction of 4.1% because of soaring commodity prices, supply disruptions, and moves by central banks to hike interest rates.
Market Views
- Asian stocks rose on Wednesday morning, and a pullback in bond yields eased some investors’ concerns about the recession caused by the higher rates. Hang Seng index advanced 449 points and Nikkei 225 index gained 264 points.
- The Reserve Bank of India is set to announce its latest interest rate decision later on Wednesday. That comes on the back of the Reserve Bank of Australia’s surprise 50 basis points rate hike on Tuesday.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Long @ 32,670
Last: 33,127
Target price: 33,650
Protective stop: 32,150
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 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. Entry order was filled on 7 June.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 21,923
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 bullish currently. 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: 12,683
Target price:
Protective stop:
Outlook
This index is currently sitting at the 20EMA support, which is also the resistance turned support zone. Both Stochastic and MACD are bullish. As long as price stays above the 20EMA, we see price continuing to move higher.
Trading Idea
Buy 12,400 for 13,500 with a stop below 12,100.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4148
Target price:
Protective stop:
Outlook
Price rebounded after being supported by the 20EMA support, which coincides with the resistance-turned-support level. Both Stochastic and MACD are bullish. We see price continuing to move higher if it able to stay above the 20EMA.
Trading Idea
Wait for better trading idea
