Market News
- S&P 500 posted its biggest single-day rally in two years on Tuesday after softer U.S. economic data and Australia’s smaller-than-expected interest rate hike stirred hope for less aggressive tightening by the Fed.
- U.S. job openings fell by the most in nearly 2-1/2 years in August in a sign the Fed’s mission to tame inflation by hiking rates was working to slow the economy while the labour demand remains fairly strong.
- Reserve Bank of Australia surprised markets with a smaller-than-expected interest rate hike of 25 basis points. They are the first major central bank to recognize that now is the time to slow down after aggressively raising rates this year.
Market Views
- Asian markets joined overnight Wall Street’s rally to trade higher on Wednesday morning after softer U.S. economic data stirred hope for less aggressive tightening by U.S. Fed. Hang Seng index soared 884 points and Nikkei 225 index rose 93 points.
- South Korea’s core inflation, which excludes food and energy prices, could peak in October as demand slows due to higher prices and rising interest rates, said Kathleen Oh, Korea economist at BofA Securities.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Short @ 29,600
Last: 30,172
Target price: 28,600 Filled
Protective stop: 30,000
Outlook
Price rebounded with a bullish engulfing candlestick pattern. Currently the index is capped by the 20EMA resistance line. Price may take a pause after a consecutive two days’ rally. It could retrace to 29,470 before continuing its upward movement.
Trading Idea
Sell 29,600 with a stop above 30,000 for 28,600. Entry order was filled on 29 Sep. Profit order was filled on 3 Oct.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 17,952
Target price:
Protective stop:
Outlook
Price rebounded strongly from the Fibonacci 200% projection support level. A rising window appeared after the bullish engulfing candlestick pattern. The 20EMA is acting as resistance point. Price may pullback to 17,320 before resuming its upward movement.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 11,516
Target price:
Protective stop:
Outlook
Price rebounded strongly from the key support zone by forming a bullish engulfing candlestick pattern. It is capped by the 20EMA resistance point. We are likely to see a price retracement to 11,220 before price resuming its upward movement.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3771
Target price:
Protective stop:
Outlook
Price rebounded strongly after testing its previous low support zone by forming a bullish engulfing reversal candlestick pattern. It is being capped by the 20EMA and we are likely to see a pullback. Price may continue its upward momentum when it retraces to 3677.
Trading Idea
Sell 3790 with a stop above 3830 for 3650.
