Market News
- Wall Street’s main indexes slid on Tuesday, with the S&P 500 down more than 2% and the Nasdaq Composite down over 3%, marking their biggest daily drop since early August as investors softened their optimism about AI in a broad market sell-off that accelerated after tepid economic data.
- The chipmaker Nvidia plunged more than 9% in regular trading, leading semiconductor stocks lower amid a sell-off on Wall Street. Nvidia shares continued sliding in post-market trading Tuesday, falling 2%, after Bloomberg reported that the company received a subpoena from the Department of Justice as part of an antitrust investigation.
- Recent data from China pointed to an economy that’s still struggling to mount a solid recovery, raising calls for further stimulus from Beijing. Worries over the sluggish outlook in China, the world’s biggest oil importer, have in turn further exacerbated the decline in oil prices due to expectations of weakening demand.
Market Views
- Asian markets tumbled on Wednesday, led by a heavy decline in technology names and as worries about the global growth outlook drove investors out of risky assets, while oil prices hit multi-month lows. Hang Seng index dropped 189 points and Nikkei 225 index slumped 1,387 points.
- Contract chip manufacturer Taiwan Semiconductor Manufacturing Company declined 4.3%. TSMC manufactures Nvidia’s high-performance graphics processing units which power large language models — machine learning programs that can recognize and generate text.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Long @ 41,357
Last: 40,789
Target price: 41,560
Protective stop: 41,270 triggered
Outlook
Price has formed a price top at 41,592. It broke below its support zone, suggesting the increased downward momentum. The 20EMA is falling and MACD has turned bearish. We could see price moving lower.
Trading Idea
Buy now 41,357 for 41,560 with a stop below 41,270. Entry and stop orders were filled on 30 Aug
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 17,398
Target price:
Protective stop:
Outlook
Price unable to form a new higher high after being capped at 18,220 resistance for a third occasion. If price further violates 17,000, we see price moving lower to 16,200. Stochastic is falling and MACD has a bearish crossover.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 18,801
Target price:
Protective stop:
Outlook
Price has been declining after being capped at 19,630 resistance for a fourth occasion. The 20EMA is falling, hinting at a bearish price trend. Stochastic is at the oversold zone and MACD remains bearish. We see price continuing to move lower.
Trading Idea
Sell 19,070 for 18,700 with a stop above 20,070
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation:
Last: 18,542
Target price:
Protective stop:
Outlook
Price has formed a price top at 18,997 yesterday. The 20EMA is falling, turning the price trend to bearish. Stochastic is falling and MACD has turned bearish. We see price continuing to move lower for this week.
Trading Idea
Wait for better trading idea
