Market News
- Dow Jones index plunged 330 points in its worst day since May after Fed Chair Jerome Powell dampened hopes for further rate cuts later this year. This sent equities to their lows of the day, led by momentum stocks such as Microsoft and Amazon. S&P 500 was down 32 points and Nasdaq Composite fell 98 points
- Powell suggested that the Fed isn’t in a long easing cycle and that the cut was aimed at insuring against downside global risks, simmering U.S. trade tensions and a desire to boost too-low inflation. He also added that the cut was not necessarily a one-off.
- Markets had been expecting more cuts by year-end, though some analysts said extended easing did not appear too warranted for now given robust U.S. consumer spending and a strong labour market.
Market Views
- Stocks in Asia Pacific faltered to six-week lows on Thursday after Fed delivered a 25-basis-point rate cut as expected but poured cold water on market expectations of a lengthy easing cycle. Nikkei 225 index was up 4 points but Hang Seng index slipped 203 points.
- On the Sino-U.S. trade front, negotiators from Washington and Beijing ended a brief round of trade talks on Wednesday with little sign of progress and agreed to meet again in September, prolonging an uneasy truce in a year-long trade war between the world’s two largest economies.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,901
Target price:
Protective stop:
Outlook
Last night, price broke below the consolidation support that ranged for the past 13 days with a long bearish red candlestick. Price has hit its rectangle pattern target and is now sitting at the 50EMA. As long as the index stays above the 50EMA, we think price could test its high again. A move below the 50EMA would accelerate the index falling to 26,461, the Fibonacci 62% retracement point. Stochastic is falling at the moment. MACD is still bullish although the fast line is below the zero line.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,612
Target price:
Protective stop:
Outlook
Price has been capped by the declining trendline but was supported by the gap support and Fibonacci 38% retracement point at 28,020. However, this support level was breached two days ago with a bearish red candlestick. The 20EMA is also pointing downwards, hinting at the possible bearish trend ahead. Price could be on the way to 27,230. Stochastic is falling at the moment. MACD has turned bearish with both of MACD’s lines below the zero line.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7976
Target price :
Protective stop: 7920 triggered
Outlook
Price invalidated the pennant pattern and broke below the rising trendline with a bearish long red candlestick last night. It is now trading near at the 50EMA. We are expecting the 50EMA to provide support and halt the decline. Should price break below the 50EMA, we could see the index falling towards the downward trendline at 7529. Stochastic is falling but the MACD is still bullish at the moment.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2983
Target price:
Protective stop :
Outlook
Price broke below the rising trendline last night with a bearish long red candlestick. Price is now sitting at the resistance-turned-support level. The 50EMA is also providing another layer of support. Should price fall below 50EMA, we could see price falling towards 2909, which is also the Fibonacci 38% retracement point. Stochastic is falling at the moment but MACD is still bullish.
Trading Idea
Wait for better trading idea.