Market News
- S&P 500 eked out a slim gain on Tuesday after strength in some big technology stocks countered disappointing quarterly reports from Johnson & Johnson and Goldman Sachs as first-quarter earnings season kicked into gear.
- St. Louis Fed President James Bullard told Reuters on Tuesday the U.S. central bank should continue raising rates on the back of recent data showing persistent inflation. Separately, Atlanta Fed President Raphael Bostic said the Fed most likely has one more rate hike ahead.
- U.S. will resume economic talks with China “at an appropriate time” earlier this year as Beijing continues to sell its vast stock of U.S. Treasuries, said U.S. Treasury Secretary Yellen. She will underscore its bilateral relationship with China as U.S. proceeds with confidence about the enduring fundamental strength of their economy.
Market Views
- Asia-Pacific markets slid on Wednesday morning as Wall Street’s earnings season continued and U.S. Fed officials delivered mixed signals on future rate hikes. Hang Seng index was down 123 points and Nikkei 225 index dropped 68 points.
- Longer-dated U.S. Treasury yields dipped, with the benchmark 10-year falling for the first time after three straight sessions of gains, as investors weighed whether the Fed would pause its rate hike cycle after the May meeting.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 33,920
Target price:
Protective stop:
Outlook
This index formed a Doji candlestick pattern following two hanging mans, hinting at a possible price correction ahead as price hit Fibonacci 200% projection level. Stochastic is at the overbought region while MACD remains bullish. We could see price retracing to the 20EMA at 33,430.
Trading Idea
Sell 34,050 for 33,600 with a stop above 34,300.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 20,503
Target price:
Protective stop:
Outlook
This index was capped by its previous price high resistance zone. It is ranging between the resistance zone and the 20EMA. A violation of the 20EMA will hint at a price decline to 19,540. Stochastic is turning up MACD remains bullish but could have formed a possible divergence warning.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation: Short @ 13,150
Last: 13,070
Target price: 12,650
Protective stop: 13,300
Outlook
Price formed a Doji candlestick pattern after being capped by its previous price high resistance zone. We are likely to see price retracing to the 20EMA at 12,910. A violation of the 20EMA will hint for a deeper correction. Stochastic is rising. MACD remains bullish but could be forming divergence warning.
Trading Idea
Sell 13,150 for 12,650 with a stop above 13,300.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7908
Target price:
Protective stop:
Outlook
This index has been moving higher with no retracement, but the sizes of candles are getting smaller, hinting at losing upward strength. This could be a hint for a price correction to 20EMA at 7765. Stochastic is at the overbought zone. A bearish MACD crossover is likely.
Trading Idea
Wait for better trading idea.
