- U.S. stocks were mixed, with declines led by tech stocks, as investors continued to worry about interest rates remaining higher for longer. Dow Jones closed 56 points higher, S&P 500 was down 14 points and Nasdaq Composite lost 123 points.
- Apple shares fell more than 2% after Bloomberg News reported China is planning to extend a ban on iPhone use to state-owned corporations. A day earlier, The Wall Street Journal reported the China was moving to prohibit iPhone usage in government agencies.
- Oil prices fell Thursday, edging back from 10-month peaks after the release of weak Chinese trade data overshadowed another draw in U.S. inventories, signaling tightening supplies.
- Asia-Pacific markets were lower on Friday morning as Japan released revised second quarter gross domestic product figures. Nikkei 225 index dropped 413 points while Hong Kong cancelled the morning trading session due to a storm warning.
- Japan’s second quarter gross domestic product expanded less then expected, with the economy growing 4.8% on a quarter-on-quarter annualized basis. This was lower than the 6% announced in the preliminary release in August, and below the 5.5% growth expected by economists polled by Reuters.
Dow Jones Index
(CFD Symbol: US30)
Recommendation: Long @ 34,645
Target price: 35,000
Protective stop: 34,580 filled
This index managed to hold at the Fibonacci 62% correction point. This could lead to a rally towards the declining downtrend line at 34,920. Stochastic has a bearish crossover. MACD remains in a bullish crossover.
Buy at 34,645 for 35,000 with a stop below 34,580. Entry was filled on 5 September. Stop was filled on 6 September
Hang Seng Index
(CFD Symbol: HK50)
Price was capped by the Fibonacci 62% correction point. It moved and closed below the 20EMA. It could move lower to test its previous low at 17,554 again. Stochastic is turning down while MACD remains bearish.
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Price retraced after forming doji candlestick patterns for four consecutive days. It is currently sitting at the 20EMA support. If it can rebound from the 20EMA, we see price moving higher again. Stochastic remains strong and MACD is still bullish.
Buy 15,270 for 15,540 with a stop below 15,220
FTSE 100 Index
(CFD Symbol: UK100)
Price could be consolidating within a flag pattern after a bullish impulsive movement. It is hovering around the 20EMA as well. Stochastic remains strong and MACD is still bullish. We are likely to see price breaking out the flag pattern to move higher.
Buy 7435 for 7620 with a stop below 7360