Market News
- Dow slid more than 200 points for second consecutive day as bond yields further declined, triggering concerns about the economic outlook. Dow dropped 221 points, S&P 500 fell 19 points and the Nasdaq Composite lost 60 points.
- The 10-year Treasury yield fell to 2.21%, its lowest level since September 2017, before rebounding to about 2.26%. A portion of the yield curve further inverted as 3-month Treasury bills last yielded 2.36%, well above the 10-year rate. This was seen by traders as a potential sign that a recession is on the horizon.
- Investors continue to watch for developments on the U.S.-China trade front, with Beijing making threats earlier this week through its state media regarding rare earth minerals.
Market Views
- Asian stocks were mixed on Thursday as rhetoric from Beijing and Washington over trade matters kept alive investor concerns about the tariff war’s impact on global economic growth. Nikkei 225 is down 154 points and Australian 200 index is lower by 44 points. Hang Seng slipped 57 points.
- The official newspaper of the Communist Party of China, the People’s Daily, advised the U.S. side not to underestimate the Chinese side’s ability to safeguard its development rights and interests.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,082
Target price:
Protective stop:
Outlook
Last night, price has moved below the support level of 25,229. Our bearish view remains unchanged. The 20EMA is still declining and bearish. Price could be on the way down 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 : 27,099
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 on the way down to 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.
Trading Idea
Wait for better trade idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7213
Target price:
Protective stop:
Outlook
Price has moved below the support at 7251 and is hovering around 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 : 2779
Target price:
Protective stop :
Outlook
Price has been capped by the 20EMA for the past few days. Price continued to decline sharply for the second consecutive day and has moved below the 2784 support. We are looking at a price test to 2712. MACD is bearish and Stochastic is in oversold extreme but is weak.
Trading Idea
Wait for dip to 2712 to buy for a rally to 2815 with stop below 2685.
