Market News
- Wall Street closed higher on Thursday, extending recent gains as data showing a fall in consumer prices in December bolstered expectations of less aggressive interest rate hikes from the Fed. The Dow rose 216 points, S&P 500 was up 13 points and Nasdaq Composite gained 69 points.
- U.S consumer prices fell for the first time in more than 2-1/2 years in December, the report showed, giving some hope that inflation was now on a sustained downward trend. The CPI report confirms that inflation is in a downward trend and that it has reversed.
- Philadelphia Fed President Patrick Harker and St. Louis Fed President James Bullard acknowledged the moderation in prices, but stressed on the need for further monetary policy tightening to bring inflation down to the central bank’s target.
Market Views
- Asian markets were mixed on Friday morning after the U.S. consumer price index showed inflation cooled in December, raising investors’ hopes that the Fed can return to slower interest rate hikes. Hang Seng index jumped 28 points while Nikkei 225 index dropped 306 points.
- The Federal Aviation Administration (FAA) said its preliminary analysis of a computer system outage on Wednesday that led to a 90-minute nationwide ground stop and disrupted more than 11,000 flights was prompted by a procedural failure.
(CFD Symbol: US30)
Dow Jones Index
Trend:
Recommendation:
Last: 34,087
Target price:
Protective stop:
Outlook
Price is trading near to its previous price high resistance zone, which could be a hint that this index is going to have a price correction to the 20EMA at 33,500. Stochastic is at the overbought zone and MACD is bullish.
Trading Idea
Wait for better trading idea.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend:
Recommendation:
Last: 26,158
Target price:
Protective stop:
Outlook
This index was capped by the 20EMA resistance point, where the Fibonacci 38% correction point comes in at 26,630 as well. It is also near to its previous price high resistance zone. Price could retest the low at 25,590. Stochastic is still weak and MACD is bearish.
Trading Idea.
Sell 26,400 for 25,750 with a stop above 26,700.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 11,397
Target price:
Protective stop:
Outlook
This index hit its support-turned-resistance zone yesterday and formed a Spinning Top candlestick pattern. This could be a hint that a price correction to 11,080 is likely. Stochastic is at the overbought zone and MACD is bullish.
Trading Idea
Wait for better trading idea.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7794
Target price:
Protective stop:
Outlook
Price reached a recent price high at 7815. A price correction to the 20EMA at 7584, which is also the resistance-turned-support zone is likely if price unable to create a new high. Stochastic is at the overbought zone and MACD is bullish.
Trading Idea
Wait for better trading idea.
