Market News
- Dow Jones dropped 286 points, S&P fell 34 points and Nasdaq Composite was lower by 122 points as U.S. -China trade worries persisted with more companies suspending business with giant Huawei. UK-based chip designer Arm Holding, Panasonic and Vodafone have suspended business with the Chinese telecom giant Huawei.
- Investors started to fear the U.S.-China trade war is slowing the economy as Wall Street begins to realize the trade war may last a lot longer than previously expected. Bond yields and crude oil also plunged on Thursday as the rising risk spread through other markets.
- Chinese rhetoric is getting stronger in tone with China continuing to draw a hard line on their stance and with the US not offering any leeway, both sides are still seen heading towards a full blown trade war at this point.
Market Views
- Asia Pacific markets fell in early trade on Friday as investors remained worried that the trade tensions between the United States and China would stymie global economic growth.
- Beijing said that Washington needs to correct its “wrong actions” for trade talks to continue and it is hard to see Trump bending over to meet the Chinese demand. Instead we are likely to see a tariffs tit-for-tat next month and Huawei crisis widening.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,536
Target price:
Protective stop:
Outlook
Price was capped at 25,853 and last night we saw a decline lower to 25,309. The decline does not look completed at the moment. We are expecting another push below 25,229. MACD is still bearish and Stochastic looks weak. This supports our view of another push below 25,229.
Trading Idea
Wait for better trade idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,381
Target price:
Protective stop:
Outlook
Price moved below the Fibonacci 50% correction point and the next target would be the 62% point at 26,944. Stochastic is into oversold extreme but MACD is still bearish but could be turning around. We believe price is likely to test 26,944 but price could find a bottom around this area.
Trading Idea
Wait for a dip to 26,950 to buy for 28,245 with stop below 26,650.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7329
Target price
Protective stop:
Outlook
Last night price tested the support at 7259 and this support manged to halt a price decline. However the bounce at the moment does not look strong. We believe this index is likely to test the Fibonacci 38% support at 7192. MACD is still bearish and Stochastic is moving lower at the moment.
Trading Idea
Wait for dip to 7192 to buy for a rally to 7500 with stop at 7140.
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2827
Target price:
Protective stop :
Outlook
Price has been capped by the 20EMA for the past few days and last night we saw a big decline lower towards the support at 2785. The decline does not look completed and we are looking at a decline to Fibonacci 38% support at 2712. MACD is bearish but it is not strongly bearish. Stochastic is neutral at the moment.
Trading Idea
Wait for dip to 2712 to buy for a rally to 2815 with stop below 2685.
