- Three major U.S. indexes slid on Thursday on worries that the Federal Reserve’s aggressive fight against inflation could hobble the U.S. economy into a recession, and as investors fretted about a rout in global currency and debt markets.
- A sell-off in U.S. Treasuries resumed as Fed officials gave no indication the central bank would moderate or change its plans to aggressively raise interest rates to bring down high inflation. Cleveland Fed President said she does not see distress in U.S. financial markets that would alter the central bank’s campaign to lower inflation.
- Data showed the number of Americans filing new claims for unemployment benefits fell to a five-month low last week as the labour market remains resilient despite the Fed’s aggressive interest rate hike, reiterating that the Fed has a long way to go to fight with the inflation.
- Asian markets on Friday were headed for the worst month since the onset of the COVID-19 pandemic, while jitters in currency and bond markets persisted over hawkish talk from central banks, worries about global recession and rising geopolitical risk. Hang Seng index fell 15 points and Nikkei 225 index slumped 529 points.
- Russian President Vladimir Putin will begin annexing four Ukrainian regions to his country on Friday, a move the United Nations said would mark a “dangerous escalation” and jeopardise prospects for peace.
Dow Jones Index
(CFD Symbol: US30)
Recommendation: Short @ 29,600
Target price: 28,600
Protective stop: 30,000
Price is currently hovering around the Fibonacci 200% projection level. If price can maintain at this support level, we could see price rebounding to test the 20EMA at 30,580. Stochastic is at the oversold zone and MACD could be forming potential divergence warning.
Sell 29,600 with a stop above 30,000 for 28,600. Entry order was filled on 29 Sep.
Hang Seng Index
(CFD Symbol: HK50)
Price has been on a decline after violating its previous low support of 18,132 with a falling window. The 20EMA is still falling. Price could be on the way down to 16,730. Stochastic is at the oversold zone and MACD remains bearish.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Recommendation: Short @ 11,350
Target price: 10,950
Protective stop: 11,550 Triggered
Price is currently hovering around the Fibonacci 161% projection level. The next support lies at 10,940. Stochastic is at the oversold zone and MACD could be forming potential divergence warning. If price manages to stay within this support zone, we see price rebounding to 20EMA at 11,760.
Sell 11,350 for 10,950 with a stop above 11,550.
S&P 500 Index
(CFD Symbol: US500)
Price is currently hovering around the Fibonacci 161% projection level, coinciding with the previous low support zone. It could test the 20EMA at 3817 if it able to maintain at this support level. Stochastic is at the oversold zone and MACD could be forming potential divergence warning.
Wait for better trading idea.