- Wall Street’s main indexes closed lower on Tuesday, the first session after the U.S. Labour Day holiday and summer vacations, as traders assessed fresh economic data in volatile trading. The Dow fell 173 points, S&P 500 was down 16 points and Nasdaq Composite declined 85 points.
- Numbers from S&P Global showed the services sector Purchasing Managers’ Index fell short of flash estimates for August. A stronger-than-expected reading on the U.S. services sector fueled expectations that the Federal Reserve will keep raising interest rates to tame inflation.
- Concerns over the supply of energy to Europe and how COVID-19 lockdowns will impact China’s economy also drove markets down on Tuesday, said Shawn Cruz, head trading strategist at TD Ameritrade. There are many uncertainty and volatility coming from all over the world.
- Markets in Asia-Pacific traded lower on Wednesday morning as investors anticipate the Fed to give its summary on current economic conditions, also known as the Beige Book. Hang Seng index fell 344 points and Nikkei 225 index dropped 321 points.
- Australia’s real GDP grew 0.9% in the second quarter after rising 0.7% in the previous period, official data showed. The ABS said strong domestic demand as well as an increase in travel supported overall growth.
Dow Jones Index
(CFD Symbol: US30)
Recommendation: Long @ 31,550
Target price: 32,300
Protective stop: 31,200 Triggered
Price has violated its key Fibonacci 62% correction point. The 20EMA is falling, suggesting the bearish price trend. As there is no sign of divergence or reversal signals as yet, we are likely to see price testing its previous low support zone at 30,130. Stochastic is at the oversold zone and MACD is bearish.
Buy 31,550 for 32,300 with a stop below 31,200. Entry was filled on 1 Sep. Stop was triggered on 6 Sep
Hang Seng Index
(CFD Symbol: HK50)
Price violated its low of 19,165 few days ago. The 20EMA is falling, suggesting the bearish price trend. Price could continue its downward trend to move lower to 18,234. Stochastic is falling and is in the oversold zone. MACD is bearish and is falling.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Price violated its Fibonacci 62% correction point. The 20EMA is falling, hinting at the bearish price trend. Stochastic is in the oversold zone and MACD is bearish. We could see price continuing its downward momentum to test its previous low at 11,320.
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Recommendation: Long @ 3950
Target price: 4060
Protective stop: 3895 Triggered
Price is currently fluctuating around its Fibonacci 62% correction point. The falling 20EMA is hinting at the bearish price trend. Stochastic is at the oversold zone and MACD is bearish. If price violates 3900, we are likely to see a further decline to 3754
Buy 3950 with a stop below 3895 for 4060. Entry was filled on 1 Sep. Stop was triggered on 2 Sep.