Market News
- S&P 500 and Dow ended at record highs on Tuesday, shrugging off weak consumer confidence data, as mining stocks surged following China’s announcement of a sweeping stimulus package. Nasdaq Composite gained 100 points.
- The indexes initially trimmed gains after a report from the Conference Board revealed an unexpected decline in U.S. consumer confidence in September, driven by growing concerns about the labor market’s health.
- Federal Reserve Governor Michelle Bowman cautioned that key inflation measures remained “uncomfortably above” the Fed’s 2% target, warranting caution as the Fed proceeds with cutting interest rates.
Market Views
- Asia Pacific stocks rose on Wednesday morning, with Chinese markets seeing outsized gains after Beijing unveiled a string of new stimulus measures aimed at shoring up economic growth. Hang Seng index advanced 381 points and Nikkei 225 index rose 36 points.
- The Reserve Bank of Australia’s stance was driven chiefly by sticky inflation, although data on Wednesday showed consumer price index inflation eased substantially in August. But core CPI inflation still remained sticky and above the RBA’s target.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 42,136
Target price:
Protective stop:
Outlook
Price has created an all-time high at 42,288. As long as it stay above the 20EMA at 42,000, we see price moving higher again. A violation of 42,000 will bring price lower to 41,830. MACD and Stochastic remain bullish.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 18,370
Target price:
Protective stop:
Outlook
Price has tested its previous price high resistance zone. It has to penetrate above this zone for more upside, else, we are likely to see price retracing to 18,380. MACD and Stochastic remain strong and bullish.
Trading Idea
Buy 18,360 for 19,700 with a stop below 18,150
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 19,904
Target price:
Protective stop:
Outlook
Price has been testing its previous price high resistance zone for a fourth occasion. There is high chance that price would penetrate this resistance zone for more upside. MACD and Stochastic remain bullish.
Trading Idea
Wait for better trading idea
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation:
Last: 18,916
Target price:
Protective stop:
Outlook
Price was capped by its previous price high resistance. We are likely to see price moving lower to 18,690. Stochastic is falling while MACD remains bullish.
Trading Idea
Wait for better trading idea
