Market News
- S&P 500 dipped after data showed private-sector business activity in the United States contracted for a second straight month in August, with particular softness in the services sector as demand weakened in the face of inflation and tighter financial conditions. Dow Jones and Nasdaq closed lower as well.
- Fed Chair Jerome Powell is expected to reinforce a strong commitment to stamp out inflation running at four-decades high on Friday’s central bank gathering in Jackson Hole. Chief executive of Longbow Asset Management in Tulsa expected Fed to raise interest rates by 75 basis points in September.
- Federal Reserve Bank of Minneapolis President Neel Kashkari says his biggest fear is that markets are underestimating how high inflation will go or how persistent it would be, adding that the Fed might need to be more aggressive than anticipated.
Market Views
- Asia-Pacific shares slipped on Wednesday after the Dow Jones and S&P 500 posted their third day of losses in the U.S. Hang Seng index slid 279 points and Nikkei 225 index lost 93 points.
- Electric vehicle maker Xpeng plunged more than 13%, reaching new lows since its debut in Hong Kong last year after it reported a wider-than-expected quarterly loss of 2.7 billion Chinese yuan ($394 million), missing analyst estimates.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 32,800
Target price:
Protective stop:
Outlook
Price has been on a correction after forming a bearish Harami reversal candlestick pattern at the resistance zone. It moved below the 20EMA support, which has become a resistance point. The next support lies at 32,210. Both Stochastic and MACD are falling.
Trading Idea
Sell 33,150 for 32,250 with a stop above 33,650.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation: Long @ 20,100
Last: 19,215
Target price: 21,000
Protective stop: 19,650 Triggered
Outlook
Price broke below the consolidation zone. Hinting at a move lower to 18,950 in the next couple of days. There is divergence warning given from the MACD. Stochastic is declining as well.
Trading Idea.
Buy 20,100 for 21,000 with a stop below 19,650. Entry order will filled on 16 Aug. Stop was triggered on 23 Aug.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 12,826
Target price:
Protective stop:
Outlook
An Evening Doji Star reversal candlestick pattern was formed at its Fibonacci 62% resistance point. Price is correcting and has moved below the 20EMA. We could see price falling to 12,586. Both Stochastic and MACD are falling.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4113
Target price:
Protective stop:
Outlook
Price was being capped at the Fibonacci 62% resistance point, which is also the previous high resistance zone. MACD has been giving divergence warning that hints at possible price high. Price moved below the 20EMA and we are likely to see price testing 4022.
Trading Idea
Wait for better trading idea.
