Market News
- Wall Street ended lower on Tuesday, with the S&P 500 extending its losing streak to four sessions, as skittish investors fretted over Federal Reserve rate hikes and further talk of a looming recession. Meta Platforms’ shares sliding 6.8%, dragging the markets down.
- Bank of America Corp’s chief executive predicted three quarters of mild negative growth next year, while JPMorgan Chase and Co’s CEO Jamie Dimon said inflation will erode consumer spending power and that a mild to more pronounced recession was likely ahead.
- Money market bets are pointing to a 91% chance that the U.S. central bank might raise rates by 50 basis points at its Dec. 13-14 policy meeting, with rates expected to peak at 4.98% in May 2023, up from 4.92% estimated on Monday before service-sector data was released.
Market Views
- Shares in the Asia-Pacific were mixed on Wednesday morning after major U.S. indexes fell more than 1% each overnight as recession concerns weigh on markets. Hang Seng index rose 20 points while Nikkei 225 index dropped 178 points.
- China’s dollar-denominated exports fell 8.7% in November on an annualized basis, declining more than expectations of a 3.5% drop, according to analysts in a Reuters poll.
(CFD Symbol: US30)
Dow Jones Index
Trend:
Recommendation:
Last: 33,671
Target price:
Protective stop:
Outlook
This index undergone a price correction after reaching a price high at 34,663. It is currently sitting at the 20EMA support. A violation of the 20EMA will hint at further price decline to 32,360. Both Stochastic and MACD are falling.
Trading Idea
Sell 34,100 with a stop above 34,400 for 33,450
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 19,461
Target price:
Protective stop:
Outlook
Price has been moving higher after rebounding from the 20EMA support. However, there is potential divergence warning given from MACD that hints at possible price high. A break of 19,395 will likely to bring price lower to 20EMA at 18,190.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 11,581
Target price:
Protective stop:
Outlook
Price could have formed a potential double top chart pattern. A violation of the key neckline support at 11,443 will confirm the double top pattern and project a target price at 10,765. Stochastic is falling and MACD is giving potential divergence warning.
Trading Idea
Sell 11,730 for 10,770 with a stop above 11,820
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3950
Target price:
Protective stop:
Outlook
This index is currently testing the resistance-turned-support level at 3913. A violation of this support will bring price lower to 3772. Stochastic is falling and MACD is giving potential divergence warning.
Trading Idea
Wait for better trading idea.
