Market News
- U.S. stock closed lower on Tuesday after a disappointing forecast from Home Depot and U.S. retail sales data for April pointed to softer consumer spending, while uncertainty about interest rates and debt limit negotiations weighed on sentiment.
- Home Depot declined 2.15% as one of the biggest drag on both the Dow Industrials and S&P 500 after the home improvement retailer cut its annual sales forecast and projected a steeper-than-expected decline in profit.
- The Commerce Department reported retail sales rose 0.4% in April, short of the estimate for an increase of 0.8%. But core retail sales rebounded, a figure excluding automobiles, gasoline, building materials and food services.
Market Views
- Asia Pacific markets were mixed on Wednesday as markets remained on edge over slowing growth in China and the U.S. debt ceiling. Hang Seng index slipped 158 points while Nikkei 225 index jumped 0.9% to a near 20-month high as Japan’s economy grew more than expected in the first quarter.
- Quad leaders also canceled a planned meeting in Sydney next week as U.S. President Joe Biden cut his Asia trip short to return to the U.S. for talks on the debt ceiling.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 33,015
Target price:
Protective stop:
Outlook
Price was resisted by the falling 20EMA that hints at potential downside ahead. MACD is bearish and is moving lower. We are likely to see price continuing its downward movement if it breaks below its recent price low of 32,910.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation: Sell @ 20,230
Last: 19,792
Target price: 19,210
Protective stop: 20,000 triggered
Outlook
This index is consolidating within a sideway rectangle zone. It will continue its sideway movement until either end is broken. Stochastic is still weak and MACD is bearish. We think price will go 18,810 if it break below 19,380.
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. Stop was filled on 15 May.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 13,449
Target price:
Protective stop:
Outlook
Price is trading near to Fibonacci 161% projection level yesterday. Stochastic is at the overbought zone but MACD remains bullish. We think price could retrace to the 20EMA at 13,210 in the coming days unless it further break above 13,510.
Trading Idea
Sell 13,450 for 13,230 with a stop above 13,520.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7731
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 remains weak and MACD is still bearish at the moment.
Trading Idea
Sell 7772 for 7670 with a stop above 7820
