Market News
- U.S. stock indexes closed lower on Tuesday as investors grew more cautious ahead of a U.S. consumer price index report and a meeting between U.S. political leaders to discuss the debt ceiling. Dow Jones fell 56 points, S&P 500 was down 18 points while Nasdaq Composite remained unchanged.
- Talks over the U.S. debt ceiling are adding to caution in the market as traders were also waiting for an update on plans for the debt ceiling from a meeting between U.S. President Joe Biden, Republican House Speaker Kevin McCarthy and other congressional leaders at the White House.
- The reading is expected to show that inflation eased further in April, but remained well above the Federal Reserve’s 2% annual target, which could invite more hawkish measures from the central bank.
Market Views
- Asian stocks sank on Wednesday as markets hunkered down before key U.S. consumer inflation data due later in the day, with Chinese bourses down for a second straight session after disappointing trade readings. Hang Seng index fell 143 points and Nikkei 225 index dropped 149 points.
- Chinese exports grew at a slower pace from the prior month, pointing to continued pressure on the country’s massive manufacturing sector. A swathe of weak economic data has seen traders question the breadth of a Chinese economic recovery this year, as the country reemerges from three years of anti-COVID measures.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 33,583
Target price:
Protective stop:
Outlook
Price rebounded with a bullish candle from the Fibonacci 38% correction point. The movements of the past two days were small, but price managed to stay above the 20MA. Both Stochastic and MACD are rising. We could see price rebounding from the 20MA to 34,250 if it able to stay above the 20MA.
Trading Idea
Buy 33,580 for 34,200 with a stop below 33,360.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation: Sell @ 20,230
Last: 19,783
Target price: 19,210
Protective stop: 20,000
Outlook
This index was capped by its Fibonacci 62% correction point. It could be moving within a bear flag that hints at more downside ahead. Stochastic remains weak and MACD is bearish. We are likely to see price breaking down the bear flag and diving to 18,810.
Trading Idea.
Sell 20,230 for 19,210 with a stop above 20,300. Entry was filled on 5 May. Shifted stop lower to 20,000.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 13,209
Target price:
Protective stop:
Outlook
Price continues to range inside a channel consolidation zone. It hit its upper channel boundary and we are likely to see price moving lower to its lower channel at 12,930. Stochastic is rising. MACD remains bullish but it could be giving potential divergence warning.
Trading Idea
Wait for better trading idea.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7761
Target price:
Protective stop:
Outlook
Price was resisted by its overhead 20MA resistance point. As long as it moves below the 20MA, we are likely to see price testing 7564. Stochastic is near to the oversold zone. MACD remains bearish at the moment.
Trading Idea
Wait for better trading idea.
