Market News
- Wall Street’s three major indexes closed lower on Thursday as concerns mounted ahead of the closely watched monthly nonfarm payrolls numbers due on Friday and on concerns the Fed’s aggressive interest rate stance will lead to a recession.
- Chicago Fed President Charles Evans was the latest to spell out the central bank’s outlook on Thursday, saying policymakers expect to deliver 125 basis points of rate hikes before year’s end as inflation readings have been disappointing.
- Oil prices rose, holding at three-week highs after the Organization of the Petroleum Exporting Countries plus its allies agreed to cut production targets by 2 million barrels per day, the largest reduction since 2020.
Market Views
- Shares in the Asia-Pacific slid on Friday morning ahead of the monthly U.S. jobs report, which is likely to guide the Federal Reserve’s monetary decision in November. Hang Seng index fell 206 points and Nikkei 225 index dropped 216 points.
- The labour market remains tight even as demand begins to cool amid higher rates. On Friday the nonfarm payrolls report on employment in September will help investors gauge whether the Fed alters its aggressive rate-hiking plans.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 29,937
Target price:
Protective stop:
Outlook
Price was capped by the 20EMA which is acting as resistance point. We expect price to retrace to the Fibonacci 50% correction point at 29,464 before resuming its upward movement again. Stochastic is rising and there is divergence warning given from MACD.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 17,810
Target price:
Protective stop:
Outlook
Price was capped by the 20EMA resistance point, which is also the support-turned-resistance level as well as the Fibonacci 50% resistance point. We are likely to see price pullback to 17,380 before its rally. Stochastic is rising and MACD has a bullish crossover.
Trading Idea.
Sell 18,000 for 17,400 with a stop above 18.200.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 11,469
Target price:
Protective stop:
Outlook
Price was capped by the 20EMA resistance point after rallying from 10,831. It could retrace to 11,130-11,220 before continuing its upward movement. Stochastic is rising and there is divergence warning given from MACD.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation: Short @ 3790
Last: 3739
Target price: 3650
Protective stop: 3830
Outlook
Price was capped by its overhead 20EMA resistance point. It could take a pause and pullback to 3650 before continuing the next rally. Stochastic is rising and there is divergence warning given from MACD.
Trading Idea
Sell 3790 with a stop above 3830 for 3650. Entry was filled on 6 Oct.
