Market News
- S&P 500 and Nasdaq Composite closed lower on Thursday, extending their losing streak that kicked off 2024, although the Dow Jones eked out a win on the back of financial stocks and strong jobs data, closing 10 points higher last night.
- Bets that the Fed could start reducing rates this year had driven much of the gains toward the end of 2023, though the latest minutes from the central bank’s December policy meeting did not offer many clues on when the easing might commence.
- ADP National Employment report showed U.S. private employers hired more workers than expected in December, pointing to persistent labor market strength that should continue to sustain the economy. This came ahead of official U.S. employment data due on Friday.
Market Views
- Asian stocks were mixed on Friday morning as they steadied after a weak start to the new year, although anticipation of key U.S. payrolls data and persistent concerns over China kept investors on edge. Hang Seng index fell 23 points while Nikkei 225 index rose 189 points.
- Oil ticked slightly higher following declines on Thursday, when massive weekly gasoline and distillate stock builds overshadowed a larger-than-expected crude stock draw.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 37,450
Target price:
Protective stop:
Outlook
Price broke and closed below the rising channel two days ago, suggesting the beginning of possible downtrend ahead. MACD remains bearish and Stochastic is at the oversold zone. Let’s see if price will retest the Fibonacci 62% correction point before the next decline.
Trading Idea
Sell 37,615 for 37,450 with a stop above 37,715
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 16,562
Target price:
Protective stop:
Outlook
Price was capped by its previous price high resistance zone and is moving within a bearish flag pattern. Price could move lower to 16,000 if its violates the flag pattern at 16,480. Both MACD and Stochastic are bearish.
Trading Idea
Sell 16,750 for 16,170 with a stop above 16,870
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 16,257
Target price:
Protective stop:
Outlook
Price is forming lower highs and lower lows, suggesting potential downtrend ahead. It moved below the 20EMA as well. It is likely to move lower to 16,190 in the coming session. Both Stochastic and MACD are bearish.
Trading Idea
Wait for better trading idea
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation:
Last: 16,542
Target price:
Protective stop:
Outlook
This index broke and closed below the sideway consolidation zone, forming a double top reversal chart pattern. The 20EMA is acting as resistance too. We are likely to see price falling to 16,310. Both Stochastic and MACD are bearish.
Trading Idea
Sell 16,610 for 16,310 with a stop above 16,700
