- S&P 500 and Nasdaq jumped on Thursday, racking up their biggest daily percentage gains in over 2-1/2 years as a sign of slowing inflation in October sparked speculation the Fed might become less aggressive with interest rate hikes.
- The Labour Department’s data showed the annual CPI number below 8% for the first time in eight months. Chief strategist at Baker Avenue Asset Management claimed this as a big deal as a peak In inflation has actually shown up in the data.
- The inflation data prompted traders to adjust rate hike bets, with odds of a 50-basis point rate hike in December, rather than a 75-basis point hike, jumping to about 85% from 52% before the data was released.
- Asian markets surged on Friday morning, following the overnight Wall Street’s strong rally, after the release of U.S. inflation data in October raised investor hopes that inflation has peaked. Hang Seng index jumped 908 points and Nikkei 225 index rose 747 points.
- President Joe Biden is expected to discuss Russia’s war in Ukraine with Chinese President Xi Jinping next week in a face-to-face meeting, which will take place ahead of the G-20 Summit in Bali, Indonesia.
Dow Jones Index
(CFD Symbol: US30)
Dow Jones rebounded strongly last night after being supported by the rising 20EMA support. We think this index is likely to be capped at 34,110, the resistance zone as well as the Fibonacci 300% projection level. MACD could be losing momentum and is giving potential divergence warning.
Wait for better trading idea
China A50 Index
(CFD Symbol: CNA50)
This index is declining after being capped by the support-turned-resistance level, which is also near to the Fibonacci 62% correction point. It is going to test the 20EMA support at 12,050. Stochastic is declining but MACD remains bullish.
Buy 12,050 for 12,350 with a stop below 11,950.
Nasdaq 100 Index
(CFD Symbol: USTec)
Price hit its previous price high resistance zone of 11,685. It has to penetrate above this resistance zone for more upside, else, we are likely to see price retracing to 10,780 again. Stochastic is rising and MACD is bullish.
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Recommendation: Long @ 3770
Target price: 3830 Filled
Protective stop: 3730
This index broke and closed above its recent price high resistance level. The next resistance lies at 4054. The 20EMA is rising, suggesting the bullish price trend. Stochastic is rising and MACD is strong and bullish.
Buy 3770 with a stop below 3730 for 3830. Entry and profit order was filled on 10 Nov.