Market News
- Wall Street stocks ended mixed on Tuesday, losing steam late in the session as investors awaited crucial inflation data and the unofficial kick-off of first-quarter reporting season. Dow Jones rose 98 points, S&P 500 remained unchanged while Nasdaq Composite lost 52 points.
- Stocks briefly gained momentum in the afternoon as Chicago Fed President Austan Goolsbee urged caution, warning that the Federal Reserve needs to be careful about raising rates too aggressively in its efforts to tame inflation.
- Focus is also on the minutes of the Fed’s March meeting, due later in the day, for more cues on monetary policy, although markets have begun speculating that the central bank has limited headroom to keep hiking rates.
Market Views
- Asian markets were mixed on Wednesday morning as investors await key U.S. inflation data that will determine the Federal Reserve’s path forward in its tightening cycle. Hang Seng index fell 121 points while Nikkei 225 index rose 175 points.
- The International Monetary Fund warned that the global economy could be heading for the weakest growth since 1990, downgrading its outlooks for the coming years.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 33,667
Target price:
Protective stop:
Outlook
This index broke out last night after consolidating for six consecutive days. The 20EMA is rising and is acting as support at 33,100. We are likely to see price moving higher to 34,110. Stochastic is at the overbought zone and MACD remains bullish.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 20,349
Target price:
Protective stop:
Outlook
This index was capped by its previous price high resistance zone. A bearish candle is in the formation after yesterday’s Doji candlestick pattern, hinting at the possible correction to 19,540. Stochastic is at the overbought zone. There is a bearish MACD crossover.
Trading Idea.
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 12,952
Target price:
Protective stop:
Outlook
Price was capped by its previous price high resistance zone. It is going to test the 20EMA support at 12,815. A violation of the 20EMA will hint for a correction to 12,250. Stochastic is near to the overbought zone but MACD remains bullish.
Trading Idea
Sell 13,150 for 12,650 with a stop above 13,300.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7778
Target price:
Protective stop:
Outlook
This index is approaching to the Fibonacci 161% projection level. Price may be due for a correction to the 20EMA at 7677. As long as it stays above the 20EMA, we see price moving higher. Stochastic is at the overbought zone and MACD is bullish
Trading Idea
Wait for better trading idea.
