Market News
- Dow Jones and S&P 500 advanced on Thursday as bank shares rallied after major lenders cleared the Fed’s annual stress test, while strong economic data stoked expectations of further interest rate hikes from the central bank.
- Stronger than expected economic data pushed Treasury yields higher and steered investors toward economically sensitive sectors as recession fears eased. But buyers shied away from some rate-sensitive growth sectors due to concerns the Fed would keep interest rates higher for longer.
- Data showed an unexpected weekly decline in the number of Americans filing new claims for unemployment benefits, and the U.S. GDP increased at a 2.0% annualized rate in the first quarter, up from the 1.3% pace reported previously.
Market Views
- Asian stocks slid on Friday as weak Chinese economic data and growing fears of U.S. interest rate hikes dented sentiment, although Chinese stocks benefited from some bargain buying and stimulus expectations. Hang Seng index fell 1 point and Nikkei 225 index dropped 175 points.
- Tokyo’s core consumer price index rose 3.1% in June year-on-year, maintaining levels above the Bank of Japan’s target for thirteen straight months.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Short @ 33,800
Last: 34,101
Target price: 33,270
Protective stop: 34,400 Filled
Outlook
Price formed a temporary bottom at 33,598, which coincides with the Fibonacci 50% correction point. However, we think that the rebound is likely to be capped at 34,200. Stochastic is likely to turn up and MACD remains bullish.
Trading Idea
Sell 33,880 for 33,270 with a stop above 34,000. Stop was filled on 29 June.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 18,959
Target price:
Protective stop:
Outlook
Price was capped by the 20EMA resistance point. If price is unable to surpass 19,380, we are likely to see price moving lower to 18,010. Stochastic is near to the oversold zone but MACD is bearish and the fast line is turning down.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 14,962
Target price:
Protective stop:
Outlook
Price created a price high at 15,282 on 16 June. It rebounded after being supported by the 20EMA. As long as price stays above the 20EMA, we could see price moving higher to its high again. Stochastic is falling and MACD remains bullish.
Trading Idea.
Wait for better trading idea.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7487
Target price:
Protective stop:
Outlook
Price rebounded from its previous low support zone. It has to penetrate the 20EMA at 7542 for more upside, else, we could see price falling to 7395. Stochastic is rising near to its oversold zone but MACD remains bearish.
Trading Idea
Wait for better trading idea.
