Market News
- Stocks fell on Thursday as investors worried that the Federal Reserve will not be as dovish as expected in its monetary policy announcement next week following strong US Durable Goods data and remarks from Draghi that a recession was unlikely but weakness was expected
- The Dow Jones index closed 128 points lower at 27,140.98. The S&P 500 index also pulled back to close at 3,003.67, losing 15 points. The Nasdaq Composite slipped to 8,238.54. Both the S&P 500 and Nasdaq hit record highs in the previous session.
- The Federal Reserve’s monetary policy meeting is scheduled for July 30-31, and markets are widely expecting an interest rate cut of at least 25 basis points with a slight chance of a 50bps cut. U.S. 2Q GDP is scheduled for release on Friday at 8:30 p.m. Singapore time. This could affect next week rate cut decision
Market Views
- Stocks in Asia traded lower on Friday morning, amid expectations the U.S. Federal Reserve could be less aggressive than expected with monetary policy when it meets on July 30-31. The Nikkei 225 was down 108 points while Hang Seng was down by 127 points
- Hong Kong’s total exports in June suffered their biggest annual fall in nearly three and a half years, hurt by a slowdown in China and the impact on the port city’s manufacturers from Sino-U.S. trade tensions.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,168
Target price:
Protective stop:
Outlook
Price has been consolidating in a tight range for the past 12 days. Support is at 27,107 and 20EMA support is providing another layer of support as well. As long as the index stays above 27,100 we are think there is a good chance of this index going to the Fibonacci 162% projection point at 27,865. MACD is bullish but there was a previous divergence warning. Stochastic is near to its overbought extreme.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,486
Target price:
Protective stop:
Outlook
Price has been capped by the declining trendline but is supported at 27.799. This index could be consolidating in between this range for the next few days. The Stochastic is rising but is still weak at the moment. The MACD is also bullish but is very near to the zero line.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8003
Target price :
Protective stop:
Outlook
Price broke and closed above the all time high resistance at 7979, creating a new all-time high at 8035. 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 and above the zero line.
Trading Idea
Buy 7998 for 8100 with stop below 7920
S&P 500 Index
(CFD Symbol: US500)
Trend : Bullish
Recommendation : Long
Last : 3012
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. As long as price stays above the uptrend, it should be progressing towards target of 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
