Market News
- S&P 500 closed the book on its biggest first-half plunge since 1970 on Thursday. Dow Jones suffered its biggest first-half percentage plunge since 1962, and Nasdaq had its largest-ever January-June percentage drop.
- Economic data released on Thursday did little to allay those fears as disposable income inched lower, consumer spending decelerated, inflation remained hot and jobless claims inched higher. Worries over inflation dampening consumer demand and threatening profit margins will have market participants listening closely to forward guidance.
- German inflation unexpectedly slowed last month, as did the pace of U.S. consumer spending in May, according to data released on Thursday – prompting some pullback in rate-hike bets but at the same time increasing worries about economic weakness.
Market Views
- Asia-Pacific markets reversed gains and fell on the first day of the new quarter on Friday morning as investors digested positive factory activity data from a private survey in China. Nikkei 225 index dropped 233 points. Markets in Hong Kong were closed for a holiday today.
- Sentiment at Japan’s large manufacturers worsened in the April-to-June period as manufacturers are facing a number of headwinds ranging from surging input costs to unsteady supply conditions, leading the headline index for large manufacturers’ sentiment came in at 9, a decline from the previous quarter’s reading of 14.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 30,502
Target price:
Protective stop:
Outlook
Price retraced after hitting the Fibonacci 62% correction point. A bearish candlestick was formed and price closed below the 20EMA on Tuesday. Stochastic is turning down and MACD remains bearish. If price is unable to move above 30,850, we are likely to see price heading lower towards its low at 29,648.
Trading Idea
Sell 30,800 with a stop above 31,150 for 29,700.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 21,876
Target price:
Protective stop:
Outlook
Price was resisted by its previous resistance price zone, which is also the Fibonacci 62% correction point. The 20EMA will be the first support level at 21,465. If price can sustain, we see price rebounding to its high again, else, a correction to 20,770 will be followed. Stochastic is rising and MACD is bullish.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 11,392
Target price:
Protective stop:
Outlook
This index retraced after testing the Fibonacci 62% correction point. If price is unable to surpass this resistance zone, we are likely to see a decline to its low at 11,035. Stochastic is falling and MACD is bearish.
Trading Idea
Sell 11,850 with a stop above 12,100 for 11,050.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3751
Target price:
Protective stop:
Outlook
Price was resisted by the Fibonacci 50% correction point. A bearish candle was formed and a price decline followed. We see price heading lower to 3640. Stochastic is falling and MACD is bearish.
Trading Idea
Wait for better trading idea.
