Market News
- Dow Jones fell for the second day, losing 280 points to close at 26,583, erasing a big surge from earlier in the day after a surprise tariff announcement from Trump escalated trade tensions between Washington and Beijing. S&P 500 index dropped 26 points and Nasdaq Composite index was down 64 points.
- Trump said he plans to impose a 10% tariff on $300 billion of Chinese imports from 1 September after his top trade negotiators briefed him on a lack of progress in U.S.-China talks in Shanghai this week. The tariffs could rise further if China’s President Xi fails to move quickly to strike a trade deal.
- Raising tariffs would lower the prospects of a deal rather than expedite it, China’s Global Times newspaper said. According to Hu Xijin, the editor-in-chief of the Communist Party-backed newspaper, Beijing would focus more on efforts to survive a prolonged trade war.
Market Views
- Asian stocks took another beating on Friday morning after Trump said he would slap a 10% tariff on the remaining $300 billion of Chinese imports from next month. Nikkei lost 509 points and Hang Seng plunged 621 points.
- The tariffs may force the Fed to again cut interest rates to protect the U.S. economy from trade-policy risks. However, if trade troubles deepen into a full blown trade war, any further rate cuts will no longer be considered mid-course adjustments as they will be thought of as necessities to prevent a recession, DRW Holdings analyst Lou Brien said.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,558
Target price:
Protective stop:
Outlook
Price broke below the consolidation support that ranged for the past 13 days with a long bearish red candlestick two days ago. It continued to fall and break below the 50EMA last night. Price is now sitting at the key Fibonacci 62% retracement point. Should price fail to stay above this level, we could see price falling towards its previous low at 25,879. 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 : 26,940
Target price:
Protective stop:
Outlook
Price broke below the rising trendline and the triangle pattern yesterday. With the falling 20EMA, we are expecting further price decline. Price could be testing its previous low at 26,665 or even lower at 26,067, which is the chart pattern target. Stochastic is at the oversold region but is still falling. MACD has also 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 : 7763
Target price :
Protective stop:
Outlook
Price invalidated the pennant pattern and broke below the rising trendline with a bearish long red candlestick two days ago. It is now sitting 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 : 2940
Target price:
Protective stop :
Outlook
Price broke below the rising trendline two days ago with a bearish long red candlestick. It also breached the resistance-turned-support level and is now testing the 50EMA. We don’t think the 50EMA can halt the decline. Price could be heading towards 2909, which is also the Fibonacci 38% retracement point. Stochastic is falling at the moment. MACD is still bullish but the slow line is approaching the zero line.
Trading Idea
Wait for better trading idea.