Market News
- Dow rose nearly 100 points but was off its high of the day as worries over the U.S.-China trade war is hurting economic growth persisted. Dow ended the day up 95.22 points while S&P 500 climbed 3 points. The Nasdaq Composite rose 8 points.
- Friday’s gains were not enough to offset this week’s losses as investors worried the prolonged U.S.-China trade war is hurting economic growth. Dow Jones is making its longest streak since 2011 by posting its fifth consecutive weekly decline, while S&P 500 and Nasdaq fell a third straight week of losses, their longest slide since December 2018..
- U.S. durable goods orders data was lower in April amid a slowdown in exports and a build-up in inventories. This is the latest economic data set showing cracks in the economy. The previous day, US manufacturing activity came in at a 9-year low.
Market Views
- Asian stocks kicked off Monday in mixed fashion as investors watched for developments from U.S. President Trump’s state visit to Japan as well as results from the European parliamentary election. Nikkei 225 was up 47 points while Hang Seng slid 165 points.
- Chipmakers led the market down last week as U.S. increased pressure on Chinese telecom giant Huawei. Last week, the Trump administration made it harder for US companies to do business with Huawei before granting a 90-day reprieve. However this could hurt relationship between the 2 largest economies and prolong the trade war.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,626
Target price:
Protective stop:
Outlook
Price on Friday was inside the range of the previous day. This could be a sign of consolidation. Tonight is a US holiday and we are expecting more consolidation and limited movement. We maintained our bearish view and we are expecting price to test 25,229 or even 24,800. MACD is bearish and Stochastic is weak.
Trading Idea
Wait for better trade idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,320
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. We could be on the way to 26,944. Stochastic is into oversold extreme but MACD is still bearish. We believe price is likely to test 26,944 but price could find a temporary 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 : 7293
Target price
Protective stop:
Outlook
Price was inside the range of the previous day on Friday. However the pattern was in the form of a Doji. We are likely to see a consolidation but our view remains the same. We are looking for this index to move lower to 7192 which is the Fibonacci 38% correction point of 2019’s rally. MACD is bearish and Stochastic is still weak at the moment.
Trading Idea
Wait for dip to 7192 to buy for a rally to 7500 with stop below 7140.
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2828
Target price:
Protective stop :
Outlook
Price has been capped by the 20EMA for the past few days. There was a sharp decline on Thursday and on Friday it was an Inside Day which is a sign of consolidation. We expect the consolidation to continue tonight but over the longer run, we are looking at a price test to 2712. MACD is bearish but it is not strongly bearish. Stochastic is in neutral zone at the moment
Trading Idea
Wait for dip to 2712 to buy for a rally to 2815 with stop below 2685.
