Market News
- S&P 500 climbed to a record high close on Tuesday as investors digested a mixed bag of early quarterly results and awaited a slew of additional reports from Tesla and other companies later this week.
- The personal consumption expenditure (PCE) index – the Federal Reserve’s preferred inflation gauge, as well as the S&P Global PMI readings and an advance fourth-quarter GDP print this week will be key in assessing the central bank’s next interest rate decision when it meets on Jan. 31.
- The European Central Bank (ECB) meets on Thursday and is expected to hold monetary policy steady. The Fed is also expected to keep rates steady when it meets next week, but investors will watch for clues on the timing of rate cuts.
Market Views
- Asian stocks were mixed on Wednesday as mixed signals from the Bank of Japan spurred some profit-taking in Japanese markets, resulting in 363 points losses in Nikkei. Hang Seng rose 58 points on a tech-fueled rally led by Alibaba Group.
- Oil prices on Tuesday handed back some of the previous day’s gains, as traders weighed production outages in the U.S. and tensions in the Middle East and Europe against rising crude supply in Libya and Norway.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 37,932
Target price:
Protective stop:
Outlook
Price rebounded after being supported by its resistance-turned-support zone, coinciding with the 20EMA support. We are likely to see price testing its recent high at 38,109 again. Both MACD and Stochastic are bullish.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation: Short @ 15,440
Last: 15,500
Target price: 15,080 filled
Protective stop: 15,610
Outlook
Price rebounded from its previous low support zone. It moved and closed above the 20EMA support. We are likely to see price moving higher to test 16,000 if it stays above the 20EMA. MACD has turned bullish and Stochastic is at the overbought region.
Trading Idea
Sell 15,440 for 15,080 with a stop above 15,610. Entry and profit target were filled on 19 Jan
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 17,477
Target price:
Protective stop:
Outlook
This index further penetrated above its recent price high, suggesting more upside ahead. The 20EMA is rising and is acting as support at the moment. MACD remains bullish and Stochastic is at the overbought region too.
Trading Idea
Wait for better trading idea
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation: Short @ 16,600
Last: 16,732
Target price: 16,380
Protective stop: 16,660 triggered
Outlook
Price managed to penetrate its support-turned-resistance zone. The 20EMA is rising, hinting at potential upside ahead. We are likely to see price testing 16,810 in the coming session. MACD remains bullish and a bullish Stochastic crossover is likely.
Trading Idea
Sell now 16,600 for 16,380 with a stop above 16,660. Entry and stop were filled on 19 Jan
