- Wall Street closed lower on Tuesday after evidence of a cooling economy exacerbated worries that the Federal Reserve’s campaign to rein in decades-high inflation may cause a deep downturn. Dow Jones slid 198 points, S&P 500 dropped 23 points and Nasdaq Composite lost 63 points.
- Data showed U.S. job openings in February dropped to the lowest level in nearly two years, suggesting that the labour market was cooling, while factory orders fell for a second straight month. Data on Monday had also pointed to weakening U.S. manufacturing activity.
- U.S. Treasury Secretary Janet Yellen said the banking crisis is “stabilizing” and regulators are prepared to act again to protect deposits if necessary, according to Bloomberg News.
- Asia-Pacific markets slumped on Wednesday as Wall Street digested a key U.S. labour report that showed job openings dropped to their lowest level in nearly two years in February. Nikkei 225 index plummeted 408 points while Hong Kong market is closed for a holiday.
- New Zealand’s central bank has surprisingly raised rates by 50 basis points, bringing the benchmark interest rate to 5.25% and higher than economists’ expectations of a 25 basis points hike. The latest move brings the interest rate to the highest level since October 2008.
Dow Jones Index
(CFD Symbol: US30)
Recommendation: Short @ 32,500
Target price: 31,600
Protective stop: 32,600 Triggered
This index has reached the Fibonacci 161% projection level, coinciding with its previous price high resistance zone. Stochastic is at the overbought zone while MACD remains bullish. If price unable to surpass this resistance zone, we are likely to see a pullback to 20EMA at 32,780.
Sell 32,500 with a stop above 32,800 for 31,600. Entry order was filled on 21 Mar. Lower stop to 32,600 on 24 Mar. Stop was triggered on 31 Mar.
Hang Seng Index
(CFD Symbol: HK50)
This index was capped by its previous price high resistance zone. Stochastic is at the overbought zone, but MACD remains bullish. We are likely to see a price retracement to the Fibonacci 62% correction point at 19,540 once price breaks the 20EMA.
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Price formed a spinning top candlestick pattern last night after being capped by its previous price high resistance zone. This could be a sign of correction to the 20EMA at 12,710. Stochastic is at the overbought zone and MACD is likely to have a bearish crossover.
Sell 13,150 for 12,650 with a stop above 13,300.
FTSE 100 Index
(CFD Symbol: UK100)
This index tested the Fibonacci 62% correction point yesterday, but was unable to surpass it. A potential bearish Harami is in the formation, hinting at a possible correction ahead. Once price violates the 20EMA at 7615, we are likely to see a test to 7400.
Wait for better trading idea.