CFD Indices – Wall Street Closed Lower On Expectation Of More Fed Rate Hikes

Market News

U.S. stocks closed lower for a fourth consecutive session on Thursday as economic data did little to alter expectations the Federal Reserve would continue raising interest rates for longer than previously thought.
Economic data on Thursday showed a labour market that continues to stay strong, although a separate report showed growth in the services sector slowed in October, keeping the Fed on its aggressive interest rate hike path.
The monthly U.S. employment report is scheduled to be released later. Economists expect 205,000 jobs were added in October, and forecast the unemployment rate remained at 3.5%, according to Dow Jones.

Market Views

Asian markets were mixed on Friday morning as markets continued to process the U.S. Federal Reserve’s 75 basis point interest rate hike. Hang Seng index surged 884 points while Nikkei 225 index dropped 550 points.
Inflation in Turkey rose 85.5% year-on-year in October for the 17th consecutive month as food and energy prices continued to climb, resulting in dramatic rise in living costs for the country of 85 million has continued unabated for nearly two years.

Dow Jones Index

(CFD Symbol: US30)

Trend:

Recommendation:

Last: 31,975

Target price:

Protective stop:

Outlook
The chart outlook of this index has turned bullish as price is trading above the 20EMA. Price is retracing currently and we are likely to see the correction to halt at the 20EMA support at 31,470. Stochastic is still bullish and MACD remains bullish too.

Trading Idea
Buy 31,500 with a stop below 30,850 for 32,850.

Hang Seng Index

(CFD Symbol: HK50)

Trend:

Recommendation:

Last: 16,170

Target price:

Protective stop:

Outlook
Price formed a temporary bottom at 14,577. A morning star candlestick pattern was formed on 1 Nov. It is testing the 20EMA and the next resistance lies at 16,800. Stochastic is rising and MACD has a bullish crossover as well.

Trading Idea.
Wait for better trading idea.

Nasdaq 100 Index

(CFD Symbol: USTec)

Trend:

Recommendation: Long @ 11,150

Last: 10,706

Target price: 11,850

Protective stop: 10,750 Triggered

Outlook
Price broke below the rising channel last night. It violated the 20EMA support as well. We are likely to see price falling to 3559 if it unable to move back inside the rising channel. Stochastic is falling and there is a bearish MACD crossover.

Trading Idea
Buy 11,150 with a stop below 10,750 for 11,850. Order was filled on 19 Oct. Stop was triggered on 3 Nov.