Market News
- Wall Street’s main indexes gained ground after paring earlier loses to shade higher on Tuesday following softer-than-expected labor market data that reaffirmed expectations of an interest rate cut by the Federal Reserve.
- Data on Tuesday showed that U.S. job openings fell to their lowest level in more than three years in April, signaling an easing in labor market tightness that supported a Fed rate cut this year. The U.S. Treasury yields slipped following the report.
- The labor market data was the latest in a string of recent reports that pointed to cooling U.S. economic growth. Data on Monday showed that U.S. manufacturing activity had slowed for the second straight month in May.
Market Views
- Asian stocks were a mixed on Wednesday morning as caution before more cues on interest rates kept investors to the sidelines, while Japanese markets fell sharply as strong wage data spurred fears of tighter monetary policy. Hang Seng index rose 61 points while Nikkei 225 index dropped 445 points.
- Stronger wages tie into the Bank of Japan’s forecasts for higher inflation in the coming months, which is expected to give the central bank more impetus to further tighten policy. The BOJ is also expected to begin scaling back its stimulative bond purchases at a meeting next week.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Short @ 38,160
Last: 38,784
Target price: 37,770
Protective stop: 38,230 triggered
Outlook
Price rebounded from 38,000 support zone last Thursday. It is currently testing its overhead resistance zone at 38,880. We could see more upside if this index penetrates and close above this zone. Stochastic is moving higher and MACD has turned bullish.
Trading Idea
Sell 38,160 for 37,770 with a stop above 38,230. Entry and stop were filled on 31 May
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation: Short @ 18,380
Last: 18,508
Target price: 17,780
Protective stop: 18,590 triggered
Outlook
Price rebounded from 18,000 support zone. It has penetrated above its previous price high resistance zone, which is also the 20EMA. We could see price moving higher towards 18,860 if it stay above the 20EMA.
Trading Idea
Sell 18,380 for 17,780 with a stop above 18,590. Entry was filled on 31 May and stop was filled 5 June.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 18,709
Target price:
Protective stop:
Outlook
Price rebounded from its previous low support zone. It is testing its overhead resistance zone at 18,720. We see price moving higher towards 18,890 if it penetrate above its overhead resistance. Stochastic is rising and MACD has turned bullish.
Trading Idea
Buy 18,570 for 18,700 with a stop below 18,500
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation:
Last: 18,517
Target price:
Protective stop:
Outlook
Price is currently ranging between 18,370 and 18,680. It rebounded from its lower boundary support zone and we are likely to see price moving higher towards the upper zone at 18,680. Stochastic is rising but MACD remains bearish.
Trading Idea
Wait for better trading idea
