CFD Indices 29 May 2019

Market News

  • Dow Jones dropped more than 200 points, giving up a 131 points gain from earlier in the day as a decline in interest rates during the U.S.-China trade war sparked worries about a possible slowdown in the economy. Dow ended the day down 237 points while S&P 500 fell 23 points. The Nasdaq Composite declined 29 points.
  • The uncertainty pushed investors toward safe-haven assets, which resulted in benchmark 10-year note yields falling to around 2.26%, its lowest level in 19 months. Bank shares fell broadly amid the lower interest rates.
  • The drop in bank shares and rates come after Trump said Monday the U.S. was “not ready” to strike a deal with China, before adding he expected one in the future. Trump also said tariffs on Chinese imports could go up “substantially.”

Market Views

  • Stocks in Asia declined on Wednesday following overnight fall on Wall Street that saw the Dow Jones falling more than 200 points. Nikkei 225 dropped 251 points and Hang Seng slid 163 points.
  • China appeared to have made a veiled threat concerning rare earth minerals, a crucial component to the U.S. technology industry. Beijing is “seriously considering” restricting rare earth exports to the U.S., according to Global Times Editor-in-chief Hu Xijin.

Dow Jones Index

(CFD Symbol: US30)

Trend :
Recommendation :
Last : 25,280
Target price:
Protective stop:

Outlook

Price was resisted by the 20EMA as expected. We maintained our bearish view. Price is on the way to test 25,229. A move below 25,229 would bring the price lower to 24,800 or even 24,707 which is Fibonacci 38% correction point of 2019’s rally. MACD is bearish and Stochastic is moving lower.

Trading Idea

Wait for better trade idea.


Hang Seng Index

(CFD Symbol: HK50)

Trend :
Recommendation :
Last : 27,300
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 are already 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 : 7236
Target price:
Protective stop:

Outlook

Price has moved below the support at 7251 and is heading towards 7192 which is the Fibonacci 38% correction point of 2019’s rally. MACD is bearish and Stochastic is still weak at the moment. We could see price move lower to 6987 if it could not hold at 7192 support.

Trading Idea

Wait for better trading idea and signal


S&P 500 Index

(CFD Symbol: US500)

Trend :
Recommendation :
Last : 2793
Target price:
Protective stop :

Outlook

Price has been capped by the 20EMA for the past few days. There was a sharp decline yesterday after consolidating for 2 days. We are looking at a price test to 2712. MACD is bearish but it is not strongly bearish. Stochastic is in extreme oversold region but is weak.

Trading Idea

Wait for dip to 2712 to buy for a rally to 2815 with stop below 2685.


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