Tag: US500

CFD Indices – Wall Street Indices Slumped On Recession Fears

Shueh Ting Wong

Market News

  • Market News
  • Wall Street slumped on Thursday, with each of the major averages suffering their biggest daily percentage drop in weeks, as fears intensified that Fed’s battle against inflation using aggressive interest rate hikes could lead to a recession.
  • U.S. central bank hiked rates by 50bps on Wednesday as was widely expected, downsizing from the consecutive 75 bps hikes at its prior four meetings, but Fed Chair Jerome Powell warned recent signs of inflation were not enough to convince Fed the battle against rising prices had been won.
  • Adding to global recession worries, the Bank of England and the European Central Bank further indicated an extended hiking cycle on Thursday. Most major central banks have followed a rate hike strategy in an attempt to reign in inflation.


Market Views

  • Asia-Pacific markets were mixed on Friday morning as recession fears grow. Disappointing U.S. retail sales for November suggested inflation is taking a toll on consumers and raising fears that the Fed’s rate hikes are tipping the economy into a recession. Hang Seng index rose 25 points while Nikkei 225 index dropped 465 points.
  • U.S. Commerce Department slapped restrictions on Chinese companies over their efforts to use advanced technologies to help modernize China’s military. That comes just two months after the Biden administration curbed China’s access to advanced semiconductors.





(CFD Symbol: US30)
Dow Jones Index

Trend:

Recommendation:

Last: 33,144

Target price:

Protective stop:

Outlook
Price plunged last night after the formation of shooting star and spinning top reversal candlestick patterns. It moved below the 20EMA support. Price is testing the resistance-turned-support zone. If price cannot rebound from this zone, we are likely to see further plunge to 31,865.

Trading Idea
Wait for better trading idea


DAX Index

(CFD Symbol: GER40)

Trend:

Recommendation:

Last: 14,013

Target price:

Protective stop:

Outlook
Price broke and closed below the 20EMA and its previous low support zone last night, confirming the triple top chart pattern. It could rebound to the neckline resistance of 14,150 before its next downward movement. Stochastic is falling and MACD is bearish


Trading Idea.
Wait for better trading idea.


Nasdaq 100 Index

(CFD Symbol: USTec)

Trend:

Recommendation:

Last: 11,333

Target price:

Protective stop:

Outlook
This index broke below the sideway consolidation zone last night with a bearish candle. Price could head lower to 10,600 in the coming week. Stochastic is near to the oversold zone and MACD has turned bearish.

Trading Idea
Wait for better trading idea.



S&P 500 Index

(CFD Symbol: US500)

Trend:

Recommendation:

Last: 3889

Target price:

Protective stop:

Outlook
Price broke and closed below the resistance-turned-support level of 3913 last night. It is likely to retest this level again before its next downward movement. Stochastic is near to the oversold zone and MACD is bearish.

Trading Idea
Wait for better trading idea.

CFD Indices – Wall Street Gained On Expectation of A Slower Pace of US Rate Hike

Nicholas

Market News

  • S&P 500 ended higher on Thursday, snapping a five-session losing streak, as investors interpreted data showing a rise in weekly jobless claims as a sign the pace of interest rate hikes could soon slow. The Dow and Nasdaq closed positively as well.
  • Moderna advanced 3.2% after the U.S. Food and Drug Administration authorized COVID-19 shots from the vaccine maker that target both the original coronavirus and Omicron sub-variants for use in children as young as six months old.
  • The inversion of the 3-month and 10-year Treasury yield curve is now the deepest since January 2001 at nearly 90 basis points, according to CNBC data. Many economists view the 2-year 10-year part of the yield curve as more predictive of a potential recession.


Market Views

  • Shares in the Asia-Pacific rose on Friday morning, following overnight Wall Street’s rally as well as China inflation data came in roughly in line with expectations. Hang Seng index rose 43 points and Nikkei 225 index gained 370 points.
  • China’s producer price index fell 1.3% in November compared to a year ago, extending its decline after shedding 1.3% in October, and slightly beating estimates for a 1.4% contraction in a Reuters poll.





(CFD Symbol: US30)
Dow Jones Index

Trend:

Recommendation:

Last: 33,778

Target price:

Protective stop:

Outlook
The price correction has brought price lower to the 20EMA support. It is currently holding at this support, and we are likely to see a short-term price rebound to retest its recent price high at 34,660.Stochastic is falling but MACD remains bullish.

Trading Idea
Sell 34,100 with a stop above 34,600  for 33,200.


DAX Index

(CFD Symbol: GER40)

Trend:

Recommendation:

Last: 14,306

Target price:

Protective stop:

Outlook
Price managed to stay above the 20EMA support, coinciding with its previous low support level. A Doji candlestick pattern was formed yesterday. We are likely to see price rebounding from the 20EMA support to retest its high at 14,600. Stochastic is falling but MACD is bullish.


Trading Idea.
Buy at 14,250 for 14,600 with a stop below 14,000.


Nasdaq 100 Index

(CFD Symbol: USTec)

Trend:

Recommendation:

Last: 11,657

Target price:

Protective stop:

Outlook
This index is currently moving within a sideways consolidation zone that range between 11,410 and 12,120. Price rebounded from the lower boundary of the consolidation zone and we are likely to see price moving higher to its upper boundary. Stochastic is about to turn soon and MACD remains bullish.

Trading Idea
Wait for better trading idea



S&P 500 Index

(CFD Symbol: US500)

Trend:

Recommendation:

Last: 3968

Target price:

Protective stop:

Outlook
Price managed to stay above the resistance-turned-support level during this price correction. We think the correction could have ended and price could move higher to test its price high at 4100 again. Stochastic is near to the oversold zone and MACD remains bullish.  

Trading Idea
Wait for better trading idea.

CFD Indices – Wall Street Fall On Recession Fear

Shueh Ting Wong

Market News

  • Wall Street ended lower on Tuesday, with the S&P 500 extending its losing streak to four sessions, as skittish investors fretted over Federal Reserve rate hikes and further talk of a looming recession. Meta Platforms’ shares sliding 6.8%, dragging the markets down.
  • Bank of America Corp’s chief executive predicted three quarters of mild negative growth next year, while JPMorgan Chase and Co’s CEO Jamie Dimon said inflation will erode consumer spending power and that a mild to more pronounced recession was likely ahead.
  • Money market bets are pointing to a 91% chance that the U.S. central bank might raise rates by 50 basis points at its Dec. 13-14 policy meeting, with rates expected to peak at 4.98% in May 2023, up from 4.92% estimated on Monday before service-sector data was released.

Market Views

  • Shares in the Asia-Pacific were mixed on Wednesday morning after major U.S. indexes fell more than 1% each overnight as recession concerns weigh on markets. Hang Seng index rose 20 points while Nikkei 225 index dropped 178 points.
  • China’s dollar-denominated exports fell 8.7% in November on an annualized basis, declining more than expectations of a 3.5% drop, according to analysts in a Reuters poll.





(CFD Symbol: US30)
Dow Jones Index

Trend:

Recommendation:

Last: 33,671

Target price:

Protective stop:

Outlook
This index undergone a price correction after reaching a price high at 34,663. It is currently sitting at the 20EMA support. A violation of the 20EMA will hint at further price decline to 32,360. Both Stochastic and MACD are falling.

Trading Idea
Sell 34,100 with a stop above 34,400  for 33,450


Hang Seng Index

(CFD Symbol: HK50)

Trend:

Recommendation:

Last: 19,461

Target price:

Protective stop:

Outlook
Price has been moving higher after rebounding from the 20EMA support. However, there is potential divergence warning given from MACD that hints at possible price high. A break of 19,395 will likely to bring price lower to 20EMA at 18,190.

Trading Idea.
Wait for better trading idea.


Nasdaq 100 Index

(CFD Symbol: USTec)

Trend:

Recommendation:

Last: 11,581

Target price:

Protective stop:

Outlook
Price could have formed a potential double top chart pattern. A violation of the key neckline support at 11,443 will confirm the double top pattern and project a target price at 10,765. Stochastic is falling and MACD is giving potential divergence warning.

Trading Idea
Sell 11,730 for 10,770 with a stop above 11,820



S&P 500 Index

(CFD Symbol: US500)

Trend:

Recommendation:

Last: 3950

Target price:

Protective stop:

Outlook
This index is currently testing the resistance-turned-support level at 3913. A violation of this support will bring price lower to 3772. Stochastic is falling and MACD is giving potential divergence warning.  

Trading Idea
Wait for better trading idea.

CFD Indices – Wall Street Mixed Ahead of Non-Farm Payroll.

Shueh Ting Wong

Market News

  • Wall Street ended mixed on Thursday as a selloff in Salesforce weighed on the Dow, while traders digested U.S. data that suggested the Federal Reserve’s interest rate hikes are working. Nasdaq rose 14 points and S&P 500 dropped 3 points.
  • U.S. manufacturing activity shrank in November for the first time in 2-1/2 years as higher borrowing costs weighed on demand for goods, data showed, evidence the Fed’s rate hikes have cooled the economy.
  • The personal consumption expenditures price index rose 0.3%, the same as in September, and over the 12 months through October the index increased 6.0% after advancing 6.3% the prior month.

Market Views

  • Asian shares declined on Friday ahead of the U.S. non-farm payrolls data, the next big test for investors looking for more signs of a shift from the Federal Reserve, while the dollar nursed heavy losses. Hang Seng index slid 191 points and Nikkei 225 index plummeted 546 points.
  • Sources told Reuters that China is set to announce an easing of its COVID-19 quarantine protocols in the coming days and a reduction in mass testing, a marked shift in policy after anger over the world’s toughest curbs fuelled widespread protests.





(CFD Symbol: US30)
Dow Jones Index

Trend:

Recommendation: Short @ 34,100

Last: 34,302

Target price: 33,450

Protective stop: 34,400 Triggered

Outlook
This index is currently retracing after penetrating its previous price high two days ago. The 20EMA is acting as first layer of support at 33,655. There is potential divergence warning given from the MACD that warns of possible price top. A violation of the 20EMA would hint for a start of a price decline.

Trading Idea
Sell 34,100 with a stop above 34,400 for 33,450. Entry and stop were triggered on 1 Dec.


Hang Seng Index

(CFD Symbol: HK50)

Trend:

Recommendation:

Last: 18,640

Target price:

Protective stop:

Outlook
This index penetrated its previous price high resistance, and is undergoing a price correction now. The Fibonacci 62% correction point lies with the 20EMA at 17,730. Stochastic is rising and MACD is bullish.

Trading Idea.
Wait for better trading idea.


Nasdaq 100 Index

(CFD Symbol: USTec)

Trend:

Recommendation:

Last: 12,000

Target price:

Protective stop:

Outlook
Price hit its previous price high resistance for a second time. If price unable to surpass this resistance zone, we are likely to see price declining to test 17,490 again. Stochastic is falling and there is potential divergence warning given from the MACD

Trading Idea
Sell 12,050 for 11,700 with a stop above 12,200.



S&P 500 Index

(CFD Symbol: US500)

Trend:

Recommendation:

Last: 4066

Target price:

Protective stop:

Outlook
This index penetrated its previous price high resistance. As long as it stays above the rising 20EMA support at 3970, we could see price continuing to move higher. Stochastic is at the overbought zone and MACD is bullish.

Trading Idea
Wait for better trading idea.

CFD Indices – Wall Streets Dragged Lower By Apple & Amazon

Shueh Ting Wong

Market News

  • S&P 500 ended down on Tuesday, with losses in Apple and Amazon ahead of an upcoming speech by U.S. Federal Reserve Chair Jerome Powell that could provide hints about magnitude of future interest rate hikes.
  • Powell is due to speak at a Brookings Institution event on Wednesday about the outlook for the U.S. economy and the labour market. Investors will be looking for clues about when the Fed will slow the pace of its aggressive interest rate hikes.
  • Mainland China’s recent wave of civil disobedience comes as the number of COVID cases hit record daily highs and large parts of several cities face new lockdowns, further threatening the world’s second largest economy.

Market Views

  • Asia-Pacific shares were mixed on Wednesday after of the release of data on China’s November factory activity, came in lower than expected, seeing a contraction for the second month in a row. Hang Seng index rose 57 points while Nikkei 225 index dropped 169 points.
  • China’s factory activity missed expectations and contracted for a second straight month as its official manufacturing Purchasing Managers’ Index for November came in at 48, below the 50-point mark that separates growth from contraction.

(CFD Symbol: US30)
Dow Jones Index

Trend:

Recommendation:

Last: 33,924

Target price:

Protective stop:

Outlook
This index declined after being resisted by the previous price high resistance zone. The first support lies at the 20EMA at 33,440. A violation of the 20EMA will hint for further downside. Stochastic is at the overbought zone and MACD remains bullish.

Trading Idea
Sell 34,100 with a stop above 34,400 for 33,450.


Hang Seng Index

(CFD Symbol: HK50)

Trend:

Recommendation: Long @ 17,300

Last: 18,285

Target price: 18,350 Filled

Protective stop: 16,600

Outlook

Trading Idea.
Buy 17,300 for 18,350 with a stop below 16,600.


Nasdaq 100 Index

(CFD Symbol: USTec)

Trend:

Recommendation:

Last: 11,514

Target price:

Protective stop:

Outlook
Price retraced after being resisted by its previous price high resistance zone. It violated the 20EMA support, and if it further breaks the low of 11,484, we are likely to see price declining to 10,820. Stochastic is falling but MACD is bullish.

Trading Idea
Wait for better trading idea.



S&P 500 Index

(CFD Symbol: US500)

Trend:

Recommendation:

Last: 3962

Target price:

Protective stop:

Outlook
This index has been retracing after reaching its previous price high resistance zone. It is currently supported by the 20EMA support. A violation of the 20EMA will hint at further downside. Stochastic is at the overbought zone and MACD is bullish.

Trading Idea
Wait for better trading idea.