Market News
- US market indices rose on Wednesday boosted by tech shares as investors cheered solid economic data. S&P 500 climbed to a new high for 2019. Asian markets opened higher following gains on Wall Street as well as a rejection of a no-deal Brexit and a likely extension of Brexit to June 30.
- Non-defence durable goods orders posted their largest increase in 6 months in Jan. Overall durable goods rose 0.4% against a 0.5% forecast. US construction spending posted its biggest increase in 9 months.
- The good set of data was tempered by Trump who now says there is a good chance of a deal with China and it doesn’t matter whether a deal is made before or at the summit. We have seen recently, Trump is prone to last minute changes.
Market Views
- Australian 200 Index made a bullish Hammer candlestick pattern yesterday on its 4-hourly chart and is now above that low. Hang Seng has opened higher and we are expecting this rally to continue in the absence of negative news.
- We have changed our bearish view on the Hang Seng and US Indices to neutral. Hang Seng and Dow Jones Index have managed to overcome their recent high but are still trading below their important resistance points. A move above their Fibonacci 62% correction point will help to change our view to bullish.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,698
Target price:
Protective stop:
Outlook
Price moved higher against our expectation reaching a high of 25,788. As the index failed to break above Fibonacci 62% correction point, the trend has not turned bullish. MACD is not bullish either. As both Nasdaq and S&P 500 had moved higher, we prefer not to keep our bearish view. We would prefer to wait for confirmation of a change in trend.
Trading Idea
Wait for confirmation of a change in trend
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,829
Target price:
Protective stop:
Outlook
Price reached the Fibonacci 50% retracement level and has since climbed back to 29,030. However price is just slightly higher than the previous day’s high and below the strong resistance at 29,146. MACD is bearish and Stochastic is turning down from overbought zone, which are not a bullish scenario.
Trading Idea
Wait for better and clearer trend direction.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7246
Target price:
Protective stop:
Outlook
Price made a new high but Stochastic is into overbought zone and MACD showed a bearish divergence. We are wary the high could be near. We prefer to wait for better direction.
Trading Idea
We wait for better trend direction and confirmation, or buy dip to 7148.
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2811
Target price:
Protective stop :
Outlook
Price hit a new high but MACD showed a bearish divergence warning at the new high. The high price was in the form of a Spinning Top candlestick pattern. The top could be near. Stochastic is in overbought extreme. We prefer to wait for confirmation or better signal
Trading Idea
Wait for confirmation or better signal
