Market News
- Wall Street ended mixed on Thursday as a selloff in Salesforce weighed on the Dow, while traders digested U.S. data that suggested the Federal Reserve’s interest rate hikes are working. Nasdaq rose 14 points and S&P 500 dropped 3 points.
- U.S. manufacturing activity shrank in November for the first time in 2-1/2 years as higher borrowing costs weighed on demand for goods, data showed, evidence the Fed’s rate hikes have cooled the economy.
- The personal consumption expenditures price index rose 0.3%, the same as in September, and over the 12 months through October the index increased 6.0% after advancing 6.3% the prior month.
Market Views
- Asian shares declined on Friday ahead of the U.S. non-farm payrolls data, the next big test for investors looking for more signs of a shift from the Federal Reserve, while the dollar nursed heavy losses. Hang Seng index slid 191 points and Nikkei 225 index plummeted 546 points.
- Sources told Reuters that China is set to announce an easing of its COVID-19 quarantine protocols in the coming days and a reduction in mass testing, a marked shift in policy after anger over the world’s toughest curbs fuelled widespread protests.
(CFD Symbol: US30)
Dow Jones Index
Trend:
Recommendation: Short @ 34,100
Last: 34,302
Target price: 33,450
Protective stop: 34,400 Triggered
Outlook
This index is currently retracing after penetrating its previous price high two days ago. The 20EMA is acting as first layer of support at 33,655. There is potential divergence warning given from the MACD that warns of possible price top. A violation of the 20EMA would hint for a start of a price decline.
Trading Idea
Sell 34,100 with a stop above 34,400 for 33,450. Entry and stop were triggered on 1 Dec.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 18,640
Target price:
Protective stop:
Outlook
This index penetrated its previous price high resistance, and is undergoing a price correction now. The Fibonacci 62% correction point lies with the 20EMA at 17,730. Stochastic is rising and MACD is bullish.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 12,000
Target price:
Protective stop:
Outlook
Price hit its previous price high resistance for a second time. If price unable to surpass this resistance zone, we are likely to see price declining to test 17,490 again. Stochastic is falling and there is potential divergence warning given from the MACD
Trading Idea
Sell 12,050 for 11,700 with a stop above 12,200.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4066
Target price:
Protective stop:
Outlook
This index penetrated its previous price high resistance. As long as it stays above the rising 20EMA support at 3970, we could see price continuing to move higher. Stochastic is at the overbought zone and MACD is bullish.
Trading Idea
Wait for better trading idea.
