Market News
- U.S. stocks ended lower on Thursday, with the Nasdaq falling more than 1% and technology shares leading declines after a disappointing Salesforce forecast. Dow Jones slipped 330 points and S&P 500 was down 31 points.
- Salesforce shares plunged 19.7%, a day after the company forecast second-quarter profit and revenue below Street estimates due to weak client spending on its cloud and enterprise business products.
- The Commerce Department report showed the economy grew slower in the first quarter than previously estimated, after downward revisions to consumer and equipment spending and a key measure of inflation ticked lower, ahead of Friday’s personal consumption expenditure report for April.
Market Views
- Asia Pacific markets drifted higher on Friday with focus turning squarely towards key upcoming U.S. PCE inflation data, while Chinese markets advanced as soft business activity data sparked hopes for more stimulus. Hang Seng index gained 174 points and Nikkei 225 index surged 410 points.
- Data from China showed its manufacturing sector unexpectedly contracted in May, with the official purchasing managers index coming in at 49.5, from 50.4 in April. The non-manufacturing PMI grew at a slower-than-expected pace, indicating that a boost from earlier stimulus measures was now running dry.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 38,074
Target price:
Protective stop:
Outlook
Price has been on a decline after forming a price top on 20 May. It could be consolidating within a potential bearish flag pattern. Both Stochastic and MACD are bearish and weak. We could see price continuing to move lower once it break down the flag pattern.
Trading Idea
Sell 38,160 for 37,770 with a stop above 38,230
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 18,378
Target price:
Protective stop:
Outlook
Price was capped by its support-turned-resistance zone, coinciding with the 20EMA. Stochastic is weak and MACD remains bearish. We could see price continuing its decline to 17,760.
Trading Idea
Sell 18,380 for 17,780 with a stop above 18,590
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 18,833
Target price:
Protective stop:
Outlook
Price formed a price high at 18,936. It broke below 18,770 support and is currently sitting at its resistance-turned-support zone. We could see a price correction towards the 20EMA before the next decline. MACD remains bearish.
Trading Idea
Wait for better trading idea
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation:
Last: 18,483
Target price:
Protective stop:
Outlook
Price further violated 18,510 support zone. It is currently retesting this zone, which coincides with the 20EMA resistance point. Both Stochastic and MACD are weak. We could see price being resisted by this zone and move lower.
Trading Idea
Wait for better trading idea
