Market News
- S&P 500 and NASDAQ ended lower on Tuesday, with indications from the Bank of England that it would support the country’s bond market for just three more days adding to market jitters late in the session. Dow Jones closed higher with the aid of Amgen shares that jumped after Morgan Stanley upgraded it.
- Banks in China extended 2.47 trillion yuan ($344 billion) of new loans in September, compared with 1.25 trillion yuan in August that comes after the People’s Bank of China’s efforts to boost credit by lowering interest rates this year.
- Treasury Secretary Janet Yellen said the U.S. is “doing very well” amid global economic uncertainty as jobs reports indicate a resilient economy even though the U.S. economy has slowed after a strong recovery.
Market Views
- Asia-Pacific markets slipped on Wednesday morning amid concerns over the global economy. Investors are also waiting for inflation data from the U.S. due later this week. Hang Seng index slumped 350 points and Nikkei 225 index dropped 61 points.
- The International Monetary Fund on Tuesday cut its global growth forecast for next year to 2.7%, suggesting that 2023 will feel like a recession for millions around the world.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 29,359
Target price:
Protective stop:
Outlook
The sharp price plunge could have ended as price formed the indecision candlestick patterns after slightly violating the Fibonacci 62% correction point. We are likely to see a short-term rebound to 29,950 and 30,450 if it stays above 28,900. MACD is having a bullish crossover but Stochastic is falling.
Trading Idea
Sell 29,950 for 28,850 with a stop above 30,500.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 16,473
Target price:
Protective stop:
Outlook
Price closed its gap support that formed on 5 Oct and further violated its previous low support zone. This is a sign of a strong bearish price trend. Price could be heading lower to 16,100 or 15,620. Stochastic is falling and MACD is still bearish.
Trading Idea.
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 10,585
Target price:
Protective stop:
Outlook
Price slightly broke below its previous low support level. It is attempting to move higher and retest the 20EMA at 11,400, supported by the potential divergence warning given from the MACD. Stochastic is falling now.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation: Short @ 3790
Last: 3604
Target price: 3650 Filled.
Protective stop: 3830
Outlook
Price retested its previous low support zone last night and formed a potential spinning top candlestick pattern. There is potential divergence warning given from the MACD. Price could rebound and test 20EMA at 3745 if it able to maintain at this support level.
Trading Idea
Sell 3790 with a stop above 3830 for 3650. Entry was filled on 6 Oct. Profit order was filled on 7 Oct.
