Market News
- Stock markets gave back gains on Friday, with Wall Street shares ending in negative territory, after the New York Fed toned down Williams’ comments by saying his speech was not about potential policy action at the upcoming Fed meeting.
- Expectations for a 50 bps cut were scaled back further after the Wall Street Journal reported the Fed was likely to cut rates by 25 bps when it meets later this month, and may make further cuts in the future given global growth and trade uncertainties.
- Dow Jones Index slipped slightly ending the day lower by 68 points. S&P 500 dropped 18 points to 2,976.61 and Nasdaq Composite index lost 60 points. The indexes’ losses came after reaching all-time highs earlier last week.
Market Views
- Asian stocks dipped on Monday morning following Friday’s night NY market decline due to heighten Gulf tension and as investors reduced expectations of an aggressive interest rate cut by Fed. Hang Seng was down 197 points and Nikkei fell 59 points.
- Tensions in Middle East, following an Iranian seizure of a British-flagged oil tanker lifted crude oil prices. Tensions remained high and could escalate into a military conflict, although all parties concerns, Iran, the US and its allies, continue to say that they do not want a conflict
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,140
Target price:
Protective stop:
Outlook
Price is now sitting on the uptrend line after a tweezer top was formed last Tuesday. A breach of this trendline could see the index dropping lower to 20EMA support at 26,900 or to price support at 26,430-26,460. This is also near to the Fibonacci 62% support. Stochastic is crossing down from the overbought region and there is a bearish MACD crossover, which is giving concern.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,582
Target price:
Protective stop:
Outlook
Price is now testing the gap support and the 20EMA at 28,450-28,460. This is also the triangle trendline support. As long as price hold at this support, price could be testing its previous high at 29,000 again. The Stochastic is rising and the MACD is still bullish at the moment. However both momentum indicators are not strong at the moment.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7821
Target price :
Protective stop:
Outlook
Price tested the 20EMA again on last Friday with a bearish red candlestick. Price is currently sitting on the 20EMA support. The MACD divergence warning is giving concern as well even though MACD is still bullish. Price could be heading towards the lower downtrend line should price fail to hold at the 20EMA. Stochastic has turned down from the overbought region and is falling
Trading Idea
Wait for new trading idea and opportunities.
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2973
Target price:
Protective stop :
Outlook
Price tested and broke below the uptrend line last Friday. Price is now holding at the 20EMA. The nearest support level is at 2959. We could see price heading lower to 2910 should it break below 2959. The Stochastic is crossing down from the overbought region but the MACD is still bullish at the moment. MACD had a bearish divergence warning earlier.
Trading Idea
Wait for new trading idea and opportunities.
