Market News
- Dow extended its win streak Tuesday as tech reigned supreme ahead key week of earnings for the sector and the upcoming Fed decision due Wednesday. The Dow rose 26 points, S&P 500 was up 12 points and Nikkei 225 index gained 85 points.
- The stronger-than-expected results were driven by automotive growth that looks set to continue, Oppenheimer says, as NXP’s partnership with Chinese EV manufacturer NIO for 4D imaging radar and China’s $72B EV tax credit subsidy provides a tailwind.
- The Fed is expected to approve what would be the 11th interest rate increase since March 2022. Markets are pricing in an absolute certainty that the Fed will approve a quarter percentage point hike that will take its benchmark borrowing rate to a target range of 5.25%-5.5%.
Market Views
- Asian stocks were mixed on Wednesday morning before a widely expected interest rate hike by the Fed due later in the day, while Australian shares rallied on weaker-than-expected inflation data. Hang Seng index was down 154 points while Nikkei 225 index rose 11 points.
- Top Chinese officials had earlier this week signaled that they will roll out more measures to support the economy, which in turn triggered a sharp rally in local shares. Investors were now holding out for more cues on the promised stimulus measures, after recent data showed that economic growth in the country slowed significantly in the second quarter.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 35,414
Target price:
Protective stop:
Outlook
A doji candlestick pattern was formed last night after creating a high at 35,522. This index has been rising without a significant retracement since 10 July. Stochastic is at the overbought zone. We are likely to see price retracing to the 20EMA at 34,700 if it break below 35,357.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 19,293
Target price:
Protective stop:
Outlook
This index is currently consolidating within a triangle pattern. Price is likely to move within a sideway zone after either end is broken for a directional movement. Stochastic is weak but MACD remains bullish.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 15,540
Target price:
Protective stop:
Outlook
Price has created a temporary price top at 15,928. As long as price stay above the 20EMA, we are likely to see price testing its price top again. A violation of the 20EMA will hint for a change in trend and a deeper correction. MACD is still bullish but the Stochastic is falling.
Trading Idea.
Wait for better trading idea
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7672
Target price:
Protective stop:
Outlook
Price could have formed a price top at 7699 after trading near to its declining trendline. A shooting star was seen after a hanging man candlestick pattern. Stochastic is at the overbought zone. Price could retrace to the 20EMA at 7531 if it violates 7663.
Trading Idea
Sell 7675 for 7540 with a stop above 7680
