Market News
- U.S. three major stock indexes veered sharply lower, snapping four-day winning streaks and notching their biggest one-day percentage drops since June 2020 during the throes of the COVID-19 pandemic as a hotter-than-expected inflation report dashed hopes that Fed could scale back its policy tightening in the coming months.
- The Labour Department’s consumer price index came in above consensus, rising to 6.3% from 5.9% in July, interrupting a cooling trend and throwing cold water on hopes that the Federal Reserve could relent after September and ease up on its interest rate hikes.
- Financial markets have fully priced in an interest rate hike of at least 75 basis points at the conclusion of the FOMC’s policy meeting next week, with a 32% probability of a super-sized, full-percentage-point increase to the Fed funds target rate.
Market Views
- Asian markets logged sharp losses on Wednesday morning, tracking similar declines on Wall Street after higher-than-expected U.S. inflation data pointed to more steep interest rate hikes by the Fed. Hang Seng index slid 492 points and Nikkei 225 index plunged 708 points.
- The external environment of a European energy crisis, a China slowdown and a strong dollar combined with ongoing interest rate hikes domestically and a slower housing market raise concerns about the growth story heading into year end, said ING analyst.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Long @ 31,700
Last: 31,140
Target price: 32,150
Protective stop: 31,450 Triggered
Outlook
Price was capped by the Fibonacci 50% correction point. A huge bearish candlestick pattern was formed last night and it brought price lower to its previous low support zone. A further violation of the support zone will hint for further decline to 30,133. Stochastic could be falling down and MACD remains bearish.
Trading Idea
Buy 31,700 with a stop below 31,450 for 32,150. Entry and stop were triggered on 13 Sep.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 18,769
Target price:
Protective stop:
Outlook
Price was capped by the falling 20EMA that hints at the bearish price trend. It is going to test its previous low support zone and if the support zone is violated, we are likely to see price declining to 18,132. Stochastic is at the oversold zone but MACD is bearish
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 12,051
Target price:
Protective stop:
Outlook
Price was capped by the Fibonacci 50% correction point and a huge bearish engulfing candlestick pattern was formed last night. We are likely to see price testing 11,922 or further low at 11,035. Stochastic could be falling soon and MACD is bearish.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation: Long @ 4000
Last: 3937
Target price: 4070
Protective stop: 3965 Triggered
Outlook
Price hit the Fibonacci 62% correction point, but was being resisted at this resistance zone. A huge bearish engulfing candlestick pattern was formed last night and we are likely to see price testing 3885 or even lower at 3737. Stochastic could be falling soon but MACD is bearish.
Trading Idea
Buy 4000 with a stop below 3965 for 4070. Entry and stop were triggered on 13 Sep.
