- S&P 500 pared early losses to close modestly lower on Thursday after the two large U.S. banks, namely the JPMorgan Chase & Co and Morgan Stanley, reported slumping profits and warned of impending economic slowdown.
- Slowdown worries were exacerbated as the Labour Department’s Producer Price Index report echoed Wednesday’s Consumer Price Index data, showing hotter-than-expected inflation in June.
- Fed Governor Christopher Waller said he supported another 75 basis point interest rate increase in July in the latest Fed comments, but he could go bigger if warranted by the data. St. Louis Fed President James Bullard echoed some of those comments, saying he favoured hiking by the same amount.
- Asian stocks hit a two-year low on Friday morning as a fresh slew of rate hikes around the world deepened concerns about the outlook for global economic growth. Hang Seng index fell 266 points while Nikkei 225 index gained 183 points.
- China’s economy contracted sharply in the second quarter data released on Friday, while annual growth also slowed significantly, highlighting the colossal toll on activity from widespread COVID lockdowns, which jolted industrial production and consumer spending.
Dow Jones Index
(CFD Symbol: US30)
A potential Hammer reversal candlestick pattern was formed last night, hinting at a possible reversal ahead. Stochastic and MACD are falling currently. If price can close above 30,717, the Hammer candlestick pattern would be confirmed, and we could see price moving higher to 31,370.
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Price broke below its previous low support zone yesterday. The 20EMA is falling, suggesting the downtrend. If price unable to move back above 20,573, it would be forming a Double Top with a price target at 18,635. Stochastic is falling and MACD is bearish.
Sell 20,490 for 19,380 with a stop above 20,800.
Nasdaq 100 Index
(CFD Symbol: USTec)
Recommendation: Short @ 11,900
Target price: 11,150
Protective stop: 11,940
Price appears to be supported by a rising trendline. This index could be moving within a triangle pattern. It could be moving higher to the upper end at 12,180 again. Stochastic is falling but MACD is hovering around the zero line.
Sell 11,900 with a stop above 12,260 for 11,150. Entry order was filled on 7 July. Lower stop to 11,940.
S&P 500 Index
(CFD Symbol: US500)
Price could be consolidating within a triangle pattern. It hit its lower triangle boundary and formed a Doji candlestick pattern. We are likely to see price rebounding to the upper end at 3880 again. Stochastic is falling but MACD is hovering around the zero line.
Buy 3804 for 3870 with a stop below 3770.