Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
Greatest Sale of Japan’s Nikkei, HK 50, S&P 500
Information is not investment advice
The stock market keeps falling as investors concern over rising costs, supply-chain issues, and inflationary pressures as they can slow down the economic recovery. Besides, the market sentiment is pressed down by the situation with the indebted property developer China Evergrande Group. Finally, investors await the Federal Reserve to start tapering as soon as next month, which can cause additional sell-off in stocks.
Nevertheless, we see that stock indexes are near the strong support levels. JP 224 has touched the 50-week moving average at 28,200, S&P 500 (US 500) has been moving sideways around the 100-day moving average at 4350, while Hong Kong’s HK 50 has hit the one-year low. Will they reverse up soon?
If we open the weekly chart of the S&P 500, we will notice that the stock index has failed to break the midline of Bollinger Bands many times since the Covid-19 outbreak in February-March 2020. Thus, there are more chances that the stock index will reverse up soon and return to the recent highs. For now, we should monitor the price movement and wait for the bullish signals. One of the indicators which can help to find the perfect moment to enter can be MACD. If the MACD indicator surges above the signal line, it can signal the reverse up. Read more about MACD in our article.
Let’s look at the daily chart of the S&P 500. We can notice a strong resistance level at 4400. If the stock index beaks it, the index may jump to the 50-day moving average of 4440. After breaking through the 50-day MA, the stock index is likely to keep rising to the previous highs of 4600. Support levels are 4350 and 4300.
HK 50 is stuck between 23,860 and 24,550. Since the index has touched the bottom of this channel, it’s likely to jump from it. The first resistance level is 24,250. If HK 50 breaks above it, the index may rally up to the 50-period MA at 24,550.
Inflation in New Zealand is the highest since 1990, edging to 7.3% in Q2 2022. The currency is under heavy pressure as the Reserve Bank of New Zealand is trying to reverse the inflationary spiral. The week ahead will give us a valuable clue about the country’s monetary policy, and we are here to talk about that.
In the middle of September 2022, the Canadian dollar has fallen to a 2-year low against the USD.
The US dollar index has all chances of reaching the 2000s high of 120.00.