Market News
- S&P 500 dipped on Tuesday as it was unable to bounce from a sharp sell-off in the prior session with a key policy statement from Fed on deck that will reveal how aggressive the central bank’s policy path will be.
- Data on Tuesday showed that the producer prices index (PPI), while slightly less than expectations on a year-over-year basis for May, remained high as gasoline prices jumped. Investors bet on aggressive interest rate hikes such as 75 basis points from the Fed.
- Official data showed on Wednesday that China’s industrial production increased 0.7% in May year-on-year, which is slightly better than market expectations.
Market Views
- Asia Pacific markets were mixed on Wednesday morning ahead of a U.S. Fed’s meeting that is expected to deliver aggressive tightening decisions. Hang Seng index advanced 298 points while Nikkei 225 index slipped 194 points.
- Beijing authorities warned on Tuesday that the city was in a “race against time”, adding to worries that the resumption of stringent curbs could hurt its economy and global supply chain as Beijing saw clusters of COVID-19 outbreaks.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Long @ 32,670
Last: 30,464
Target price: 33,650
Protective stop: 32,150 Triggered
Outlook
This index has violated its previous low support zone with a bearish candle two nights ago. Stochastic has dipped to the oversold zone while MACD has turned bearish. If price can rebound with a reversal candle at this support area, there is chance for this index to rebound to its 20EMA, else, we see further price decline ahead.
Trading Idea
Buy 32,670 for 33,650 with a stop below 32,150. Entry order was filled on 7 June. Stop was triggered on 10 June.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 21,353
Target price:
Protective stop:
Outlook
The price correction hit the resistance-turned-support area, which is also the key Fibonacci 62% correction point. Price rebounded today by confirming a Bullish Harami reversal candlestick pattern. MACD remains bullish and Stochastic is still strong. We see price rebounding to retest its high again.
Trading Idea.
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation: Long @ 12,400
Last: 11,381
Target price:13,500
Protective stop:12,100 Triggered
Outlook
This index broke below its recent price support low zone with a bearish candle two nights ago. A Doji candlestick pattern was seen last night. If price can rebound tonight, there is chance for price testing the 20EMA. Stochastic is near to the oversold zone while MACD is bearish.
Trading Idea
Buy 12,400 for 13,500 with a stop below 12,100. Entry order was filled on 9 June. Stop was triggered on 10 June.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3751
Target price:
Protective stop:
Outlook
Price violated its previous low support zone two nights ago with a bearish candle. If price cannot move back above this level, we see further price decline ahead. Stochastic is in the oversold zone while MACD is bearish.
Trading Idea
Wait for better trading idea.
