Market News
- Wall Street slid on Tuesday on the eve of U.S. Fed meeting that is expected to bring another large interest rate hike. The Dow fell 313 points while the S&P 500 was down by 43 points. The Nasdaq index fell 109 point.
- U.S. central bank is widely expected to hike rates by 75 basis points for the third straight time at the end of its policy meeting on Wednesday, with markets also pricing in a 17% chance of a 100 bps increase and predicting the terminal rate at 4.49% by March 2023.
- Focus will also be on the updated economic projections and dot plot estimates for cues on policymakers’ sense of the endpoint for rates and the outlooks for unemployment, inflation and economic growth
Market Views
- Asian markets sank on Wednesday morning, tracking overnight losses on Wall Street as investors awaited an interest rate hike and more hawkish signals from the Fed. Hang Seng index slid 319 points and Nikkei 225 index fell 366 points.
- Oil prices rose slightly after shedding in earlier trade on Wednesday ahead of an expected aggressive rate hike by the Federal Reserve. The U.S. Energy Information Administration expects oil output in the seven major U.S. oil and gas basins to lift modestly in September.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 30,752
Target price:
Protective stop:
Outlook
Price could have formed a temporary bottom at 30,464. The 20EMA is falling and is acting as resistance point at 31,637. Stochastic is at the oversold zone and MACD remains bearish. If price violates this low, we are likely to see price falling to 29,930.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 18,443
Target price:
Protective stop:
Outlook
Price has been moving lower after being capped by the falling 20EMA. It could be heading to its previous low at 18,132. Stochastic is at the oversold zone but MACD is still bearish currently.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 11,865
Target price:
Protective stop:
Outlook
Price could have formed a temporary bottom at 11,705 after forming a hammer candlestick pattern. There is potential divergence warning given from MACD. As long as price stay above this low, we see price testing the 20EMA at 12,260.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3861
Target price:
Protective stop:
Outlook
A temporary low at 3826 could have formed last night. There is potential divergence warning given from the MACD. As long as this low is not violated, we could see price testing the 20EMA at 3971. Stochastic is at the oversold zone.
Trading Idea
Wait for better trading idea.
