Market News
S&P 500 closed at a record high Tuesday for the fifth-straight session as testimony from Fed Chair Jerome Powell didn’t sway investors from bets on a first rate cut in September. Nasdaq Composite gained 25 points while Dow Jones slid 52 points.
In sign that the Federal Reserve continues to believe that its policy measures are slowing the economy, Powell said the economy was no longer “overheated” as the job market tightness nearly eased to pre-pandemic levels.
The consumer price index inflation data for June, which is due on Thursday, is set offer more cues on the path of inflation. The Fed has repeatedly signaled that it needs more confidence that inflation is easing, before it can begin cutting interest rates.
Market Views
Most Asian stocks kept to a tight range on Wednesday as markets digested mixed inflation prints from China and Japan, while focus remained on when the Fed could begin trimming interest rates. Hang Seng index rose 70 points and Nikkei 225 index gained 55 points.
Wednesday’s data showed that China’s overall disinflationary trend remained in play, inspiring little confidence in the country. Chinese stocks were nursing steep losses in recent weeks as fears of a trade war with the West eroded sentiment.
Dow Jones Index(CFD Symbol: US30)
Trend:
Recommendation:
Last: 39,272
Target price:
Protective stop:
OutlookThis index is currently moving within a consolidation range between 38,910 and 39,670. A violation of 39,130 will likely to bring price lower to 38,910. MACD has turned bearish and Stochastic is moving lower.
Trading IdeaWait for better trading idea
Hang Seng Index(CFD Symbol: HK50)
Trend:
Recommendation: Long @ 17,930
Last: 17,588
Target price: 18,410
Protective stop: 17,650
OutlookPrice violated its support zone with a bearish candle on 8 July, forming lower lows and lower highs pattern. The 20EMA is falling, hinting at more downside ahead. We are likely to see price continuing to move lower.
Trading IdeaBuy 17,930 for 18,410 with a stop below 17,650. Entry was filled on 3 July and stop order was triggered on 8 July.
Nasdaq 100 Index(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 20,484
Target price:
Protective stop:
OutlookPrice could have formed a possible price top at 20,546. It is currently being capped by its Fibonacci 62% correction point. Stochastic is weak but MACD remains bearish. We are likely to see price moving lower to 20,360.
Trading IdeaSell now 20,484 for 20,360 with a stop above 20,560
DAX Index(CFD Symbol: GER40)Trend:
Recommendation:
Last: 18,254
Target price:
Protective stop:
OutlookPrice has formed a price top at 18,669. It violated its previous low support and formed a double top reversal pattern. The 20EMA is falling, hinting at more downside ahead. We are likely to see price retracting to 18,430 before the next decline.
Trading IdeaSell 18,280 for 18,180 with a stop above 18,310. Entry and stop orders were filled on 3 July
