Market News
- U.S. benchmarks fell more than 1% on Thursday after Fed officials warned that sticky inflation will delay any potential interest rate cuts this year. Anticipation of nonfarm payrolls data- which is expected to factor into the Fed’s outlook- also kept markets on edge.
- Richmond Federal Reserve President Thomas Barkin added to the recent cautionary tone from monetary policymakers, saying Thursday that a strong economy gives time to watch the inflation data for progress.
- The Jerusalem Post reported that Israeli embassies had been put on high alert after Iran vowed retaliation over a missile strike on its consulate in Damascus earlier this week. Israel Defense Forces have cancelled home leave for combat troops amid mounting tensions with Tehran.
Market Views
- Japan’s Nikkei 225 led declines in Asia-Pacific markets on Friday as comments from U.S. Fed officials fueled worries that the central bank could hold off on rate cuts and sent Wall Street lower overnight. Hang Seng index rose 42 points while Nikkei 225 index slumped 792 points.
- The Bank of Korea is considering extending the timeframe and offering visual estimates for how it gives forward guidance on policy interest rates. The central bank largely issues verbal forward guidance, and the move would mark a significant change to how the central bank conveys policy.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Short @ 39,590
Last: 38,619
Target price: 39,350
Protective stop: 39,650 triggered
Outlook
Price formed a price top at 39,956 and has been moving lower since then. It was capped by the falling 20EMA resistance. It is currently testing its previous support zone. We could see a corrective rebound to 20EMA before the next decline.
Trading Idea
Sell 39,590 for 39,350 with a stop above 39,650. Entry and stop order were filled on 27 Mar
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 16,713
Target price:
Protective stop:
Outlook
Price was capped by its previous price high resistance zone. It has to penetrate this zone for a bullish price trend ahead. Else, we could see price continuing to move lower to 14,795. Both Stochastic and MACD are weak.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 17,909
Target price:
Protective stop:
Outlook
Price is currently testing its previous low support zone after the sharp decline. It is trading far below its 20EMA and we could see a corrective rebound to the 20EMA at 18,100. Stochastic is falling and MACD is bearish.
Trading Idea
Sell 18,100 for 17,870 with a stop above 18,130
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation:
Last: 18,177
Target price:
Protective stop:
Outlook
Price has been forming lower highs and lower lows, hinting at more downside ahead. Stochastic is weak and is moving lower. MACD has turned bearish. We are likely to see price rebounding to its 20EMA before its next decline.
Trading Idea
Wait for better trading idea
