CFD Indices – Wall Street Sank Deeper On More Interest Rate Hikes Ahead.

Market News

  • Wall Street sank deeper into a bear market on Tuesday, with the S&P 500 recording its lowest close in almost two-years as Federal Reserve policymakers showed an appetite for more interest rate hikes, even at the risk of throwing the economy into a downturn.
  • Speaking on Tuesday, St. Louis Fed President James Bullard made a case for more rate hikes, while Chicago Fed President Charles Evans said the central bank will need to raise rates by at least another percentage point this year.
  • The benchmark U.S. 10-year Treasury yielded breached 4% for the first time since 2010 – after topping the previous 3.9% high overnight.

Market Views

  • Shares in the Asia-Pacific briefly dipped 2% after the S&P 500 set a new 2022 low overnight on Wall Street. The offshore and onshore Chinese yuan reached its weakest levels since 2008. Hang Seng index slid 377 points and Nikkei 225 index dropped 587 points.
  • Oil prices were mixed in early Asian trade on Wednesday as support from U.S. production cuts caused by Hurricane Ian contended with crude storage builds and a strong dollar.



Dow Jones Index

(CFD Symbol: US30)

Trend:

Recommendation:

Last: 28,951

Target price:

Protective stop:

Outlook
Price has been falling after violating its previous low support at 30,974. It further violated the Fibonacci 200% projection level. With no sign of a recovery, we are likely to see price testing 28,232. Stochastic is at the oversold zone and MACD is bearish.

Trading Idea
Sell 29,600 with a stop above 30,000 for 28,600.


Hang Seng Index

(CFD Symbol: HK50)

Trend:

Recommendation:

Last: 17,392

Target price:

Protective stop:

Outlook
Price has been moving lower after being capped by the falling 20EMA. It further violated its previous low support of 18,132 with a falling window. Price could be on the way down to 16,730. Stochastic is at the oversold zone and MACD is bearish.

Trading Idea.
Wait for better trading idea.


Nasdaq 100 Index

(CFD Symbol: USTec)

Trend:

Recommendation:

Last: 11,159

Target price:

Protective stop:

Outlook
Price has been moving lower with no sign of recovery as of now. The falling 20EMA suggests the bearish price trend. We are likely to see price moving lower to 10,940. Stochastic is at the oversold zone and MACD remains bearish.

Trading Idea
Sell 11,350 for 10,950 with a stop above 11,550.



S&P 500 Index

(CFD Symbol: US500)

Trend:

Recommendation:

Last: 3620

Target price:

Protective stop:

Outlook
Price has been moving lower after violating its low at 3883. The falling 20EMA suggests the bearish price trend. Price is currently sitting at the previous low support level that coincides with the Fibonacci 161% projection level. The next support lies at 3497. Stochastic is at the oversold zone and MACD is bearish.

Trading Idea
Wait for better trading idea.

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