Market News
- U.S. stocks surged to close more than 2% higher on Thursday, as technical support and investors covering short bets drove a dramatic rebound from a selloff earlier in the day. The reversal marked a jump of nearly 194 points in the S&P 500, the biggest intraday jump for the index since Jan. 24.
- U.S. inflation data showed consumer prices increased more than expected in September, with CPI rising 0.4% from August, and 8.2% from September last year, while the core inflation accelerated even faster in September.
- Oil prices slipped in early Asian trade on Friday as U.S. crude and gasoline inventories jumped, while Saudi Arabia and Washington continued to clash over plans by OPEC+ to slash production.
Market Views
- Asian markets jumped on Friday, taking the lead from Wall Street overnight as investors shook off a strong inflation report. Hang Seng index surged 549 points and Nikkei 225 index advanced 937 points.
- The Monetary Authority of Singapore tightened its monetary policy in a widely expected move as inflation pressures weigh on the economy. It will re-center the mid-point of its exchange rate policy band and left the slope and width of the policy band unchanged.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Short @ 29,950
Last: 30,251
Target price: 28,850
Protective stop: 30,500
Outlook
Price rebounded strongly from its previous low support zone last night. There is divergence warning given from the MACD that hints at potential reversal. Watch out for the key resistance at 30,455. A penetration of this resistance will confirm the reversal with a possible target at 31,585
Trading Idea
Sell 29,950 for 28,850 with a stop above 30,500. Entry order was filled on 13 Oct.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 16,918
Target price:
Protective stop:
Outlook
Price formed a Morning Doji Star reversal candlestick pattern after sliding to a low at 16,101. There is potential divergence warning given from MACD. We are likely to see price rebounding and testing 17,570 and 18,170.
Trading Idea.
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 11,110
Target price:
Protective stop:
Outlook
Price rebounded strongly with a bullish candle last night after testing a low at 10,431. There is potential divergence warning given from MACD. We are likely to see price testing the 20EMA at 11,340 or even higher at 12,430.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3696
Target price:
Protective stop:
Outlook
Price rebounded strongly after the intraday violation of its previous low support. It is going to test its overhead 20EMA at 3722.There is divergence warning given from MACD. Stochastic is rising and has a bullish crossover.
Trading Idea
Wait for better trading idea.
