Market News
- The Dow closed higher as materials, industrials and consumer discretionary sectors rallied while Treasury yields stabilized. Traders appeared willing to endure prolonged U.S.-China trade talks if it averts the possibility of further rifts between the two nations and averts a global economic slowdown.
- Reuters reported overnight that Chinese officials made unprecedented offers regarding force technology transfers as well as other major sticking points. Trade between China and the U.S. has been a key issue for Wall Street as investors fear a prolonged standoff between the world’s largest economies could hinder corporate profits and economic growth.
- U.S. Treasury yields, which has dominated direction in recent sessions, rose from lows despite data showing a slowdown in the U.S. economy. U.S. 4Q Final GDP came in at 2.2% annual rate in the October-December period while economists had expected a 2.4% growth rate.
Market Views
- Asian shares posted narrow gains on Friday on revived hopes of progress in U.S.-China trade talks. Global bond yields moved higher, after a prolonged slide on worries about the economic outlook, helping to lift Asian markets higher.
- Despite recent market turbulence, the S&P 500 has gained 12.3 percent so far this quarter, which would mark its best quarterly performance since 2009. Even if an inverted yield curve persists, leading to a recession, there is usually a time lag between inversion and recession.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,797
Target price:
Protective stop:
Outlook
Price has moved above the 20EMA and is approaching the Fibonacci 62% at 25,828. A move above this resistance could see a price move to 26,000. MACD has turned bullish and is rising. Stochastic is also rising but has yet to reach the overbought extreme. If the index is unable to move above 28,828, it could be heading back to 25,416 again.
Trading Idea
Wait for better trend direction.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 29,025
Target price:
Protective stop:
Outlook
Price has moved above the 20EMA, which has been capping the index’s advance. The index could be heading higher to 29,200. This is the Fibonacci 62% of the decline from the high of 29,668 to the low of 28,450. Stochastic is approaching the overbought extreme and could limit the index’s gain. MACD is still bearish but its faster line is still rising.
Trading Idea
Watch the reaction at 29,200 for directional clues
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7346
Target price:
Protective stop:
Outlook
Price reached a low of 7247 but this low was accompanied by bullish divergence from both the MACD and Stochastic. This is a hint that the index could have made a temporary low at 7247. Stochastic is rising but MACD is rather flat, hinting that the trend may not be strong.
Trading Idea
Wait for better signal. The divergence is a hint of a possible low but the MACD momentum is not strong at the moment.
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2821
Target price:
Protective stop :
Outlook
US500 chart has a similar chart pattern compared with the US Tec. MACD and Stochastic are rising from the low. MACD is bullish. The index was supported above the Fibonacci 50% line and 20EMA has turned bullish. But we are wary of the change in trend as the index has been in a sideways movement.
Trading Idea
Wait for better trade signals.
