Market News
- Nasdaq slumped on Tuesday after a dismal forecast from Micron Technology pulled chip makers and tech stocks lower as investors await U.S. inflation data that could lead the Fed to further tighten its efforts to curb inflation.
- High inflation numbers on Wednesday, following last week’s blowout jobs report, would likely stop the Fed from easing interest rates hikes anytime soon and halt the market’s rally off mid-June lows. Traders are expecting a rate hike of 75 basis points in September.
- Micron Technology slid 3.7% after the memory-chipmaker cut its current-quarter revenue forecast and warned of negative free cash flow in its next quarter as demand wanes for chips in PCs and smartphones.
Market Views
- Asian shares tracked Wall Street losses on Wednesday morning as investors waited for a key U.S. report on inflation to provide hints to the Federal Reserve’s plans for future monetary tightening. Hang Seng index slid 352 points and Nikkei 225 index fell 218 points.
- Oil prices fell slightly after an overnight surge petered out. Brent crude futures were down 15 cents to $96.16 a barrel, while U.S. West Texas Intermediate (WTI) crude was down 22 cents to $90.28.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Short @ 32,600
Last: 32,767
Target price: 32,000
Protective stop: 33,005 Triggered
Outlook
Price is currently consolidating within a triangle pattern after trading near to its overhead resistance zone. A break of either end of the triangle pattern will lead to a directional movement higher. The 20EMA is rising, suggesting a bullish price trend. MACD is still bullish but Stochastic is falling.
Trading Idea
Sell 32,600 for 32,000 with a stop above 33,005. Entry order was filled on 3 Aug. Stop was triggered on 8 Aug.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 19,576
Target price:
Protective stop:
Outlook
Price was capped by the falling 20EMA which is acting as resistance at the moment. We are likely to see price violating its recent price low and head lower to 18,930. Stochastic remains weak and MACD is bearish.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 12,987
Target price:
Protective stop:
Outlook
Price has been declining after hitting a price high at 13,399 two days ago. It is likely to head lower to the 20EMA support, which is also the Fibonacci 50% correction point at 12,720. Stochastic is falling but MACD remains bullish.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4119
Target price:
Protective stop:
Outlook
Price is currently consolidating near its previous price high resistance zone. As long as price moves above the 20EMA, the bullish trend remains intact. Stochastic remains strong at the overbought zone. MACD is bullish.
Trading Idea
Wait for better trading idea.
