Market News
- S&P 500 and the Nasdaq Composite finished at record highs on Tuesday, driven chiefly by technology stocks amid persistent hype over AI. Apple Inc rallied over 7% to a record high after announcing its new AI features, while Microsoft and Alphabet added about 1% each.
- Asian stocks fell on Wednesday as anticipation of more cues on inflation and the Federal Reserve weighed, while reports of more U.S. trade scrutiny against China also dented sentiment.
- The increased U.S. scrutiny towards Chinese companies drummed up concerns over worsening trade ties between the world’s biggest economies. The U.S. had earlier in 2024 rolled out increased import tariffs on several major Chinese industries.
Market Views
- Asian stocks fell on Wednesday as anticipation of more cues on inflation and the Fed weighed, while reports of more U.S. trade scrutiny against China also dented sentiment. Hang Seng index slumped 183 points and Nikkei 225 index dropped 308 points.
- Broader sentiment remained fragile before the conclusion of a two-day Fed meeting later on Wednesday, where the central bank is widely expected to keep rates unchanged. Key CPI data is also due today, and is expected to show inflation remained sticky in May, giving the Fed little impetus to begin trimming rates.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Long @ 38,850
Last: 38,729
Target price: 39,140
Protective stop: 38,760 triggered
Outlook
Price rebounded from 38,530 support zone despite having intraday violation. It has now moved above the 20EMA. We could see price moving higher to 38,850. Both MACD and Stochastic are rising.
Trading Idea
Buy 38,850 for 39,140 with a stop below 38,760. Entry and stop orders were filled on 7 June
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 17,939
Target price:
Protective stop:
Outlook
Price has been forming lower highs and lower lows since 17 May. It is currently trading near to its key support at 17,730. A violation of this support will hint for more downside to 17,160. MACD has turned bearish and is moving lower.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation: Long @ 18,920
Last: 19,236
Target price: 19,050 filled
Protective stop: 18,880
Outlook
Price broke out from the flag pattern after being supported by its resistance-turned-support zone. The 20EMA is rising, hinting for more upside ahead. Both Stochastic and MACD are rising. We could expect more upside ahead.
Trading Idea
Buy 18,920 for 19,050 with a stop below 18,880. Entry was filled on 7 June and profit order was filled on 10 June
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation: Short @ 18,620
Last: 18,420
Target price: 18,520 filled
Protective stop: 18,660
Outlook
Price rebounded from the daily resistance-turned-support zone. We are likely to see price rebounding to 18,690 as long as it stays above 18,280. Stochastic is rising and there is a bullish MACD crossover.
Trading Idea
Sell 18,620 for 18,520 with a stop above 18,660. Entry and profit orders were filled on 9 June
