Market News
- S&P 500 index rose 17 points and Nasdaq Composite index gained 70 points, to close at the record highs as tech sector shakes off new regulatory threat. Dow Jones index, however, dropped 79 points due to disappointing earnings from Boeing and Caterpillar.
- Expectations for the coming first rate cut this month have firmed after several Fed members have strongly hinted policy easing is coming soon, pushing U.S. stocks to new record highs. Economists in a Reuters poll are expecting another rate cut later in the year amid rising economic risks from the ongoing U.S.-China trade war.
- Equities have largely brushed off weaker global conditions given the prospects for central bank easing, and an earnings season that has so far seen around 78% of S&P500 companies beating estimates
Market Views
- Asian shares were cautious on Thursday, shrugging off a tech-fuelled rally on Wall Street while the euro hovered near two-month lows as soft economic data bolstered expectations of rate cuts by the European Central Bank. Nikkei 225 index was up 72 points and Hang Seng index rose 67 points.
- Market attention today will be squarely on the ECB rate decision after PMI data showed euro zone manufacturing contracted for the sixth straight month.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,295
Target price:
Protective stop:
Outlook
Price is moving within a triangle pattern and is supported by the rising trendline. It could be testing the overhead all time high resistance at 27,403. We could see a higher price target at 27,865 should price break and stay above the resistance point. This is also the Fibonacci 162% projection target. Stochastic could turn up again but is already in the overbought extreme. MACD is still bullish but there was a previous bearish divergence warning and also the histogram is weak at the moment.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,633
Target price:
Protective stop:
Outlook
Price tested the overhead downward trendline yesterday. Should price break above the trendline, it could be testing 29,072 resistance point. However, we could see price moving lower to the 20EMA and even the lower trendline support if price is capped at the upper trendline. The Stochastic is rising but is still weak at the moment. The MACD is also bullish and could have a bullish crossover in the coming session.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7998
Target price :
Protective stop:
Outlook
Price broke and closed above the all time high resistance at 7979 last night. Price is also breaking out from the triangle pattern. We could see price moving higher towards 8109, the Fibonacci 127%, should price stay above the 7979. The Stochastic is turning up and the MACD is still bullish. However, MACD histogram is weak at the moment but a bullish MACD crossover is likely in the near term.
Trading Idea
Buy 7998 for 8100 with stop below 7920
S&P 500 Index
(CFD Symbol: US500)
Trend : Bullish
Recommendation : Long
Last : 3019
Target price: 3050
Protective stop : 2970
Outlook
Price tested the trendline which is also the 20EMA and rebounded. It broke above the declining trendline and closed at its record high with a bullish green candlestick yesterday. Price could be heading towards the Fibonacci 127% projection target at 3049. Stochastic is turning up and the MACD is still bullish at the moment. A bullish MACD crossover is likely in the near term.
Trading Idea
Buy at 3004 for 3050 with stop below 2970 was triggered on 24 July 2019