Market News
- The Dow Jones index closed 22 points lower at 26,007 last night. It managed to recover the bulk of a nearly 600-point drop on Wednesday after a sharp decline in bond yields stabilized to temper worries over slowing economic growth. The Nasdaq Composite gained 29 points to 7,862 while the S&P managed to eke out a small gain of 2 points after dropping nearly 2% during the day.
- A strengthening of the China Yuan against the U.S. dollar also helped to start the rally in the US equity market. The Chinese currency bounced off its session low against the dollar around the same time the major stock indexes started to pare losses, recouping the majority of its losses with S&P and Nasdaq Composite managing to eke out a gain.
- Concerns over global growth remained as gold traded at fresh multi-year highs and trade fears lingered. Gold jumped more than 2%, marking the first time since 2013 the metal traded above $1500. Its year-to-date gains have also surpassed those of the S&P 500.
Market Views
- Stocks in Asia traded mixed on Thursday morning ahead of Chinese trade data to be released later in the day. An overnight rally in U.S, equity market is encouraging but concerns over trade war lingers. Nikkei 225 index was down 42 points while the Hang Seng Index was up 264.
- China’s central bank, PBOC set onshore Yuan mid-rate at 7.0039. While the Yuan was stronger than market estimation, it was also the weakest since 2008. The quantum may be smaller but a continuous decline is likely to draw a rebuke from Trump in the near future.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,051
Target price:
Protective stop:
Outlook
Last night, price continued a rebound for a second consecutive day after falling for four consecutive days. However, this rebound was capped by the mid-June low. The 50EMA is falling and pointing downwards at the moment. If the index cannot surpass this mid-June resistance, it is heading towards its previous low point at 24,603 again. If the index can move above 26,050, it can test the 50EMA resistance point at 26,620. Stochastic is at the oversold extreme but MACD has turned bearish with both of MACD’s lines below the zero line.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,182
Target price:
Protective stop:
Outlook
Price has managed to rally for 3 days after the low at 25,457, which was close to the 161.8% Fibonacci projection. Price could be heading towards the gap area from 27,056 to 27,498. 20EMA point at 27,394 could provide another resistance point. We see a test of this 20EMA resistance to be followed by a decline to 25,457 again. Stochastic is in the oversold region and recovering but MACD is still bearish.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7589
Target price :
Protective stop:
Outlook
Price broke above the downtrend line after hitting a low of 7214. The 50EMA is bearish and falling at the moment. We see the index testing this 50EMA as Stochastic is rising from the oversold extreme. MACD is still bearish with both of MACD’s lines below the zero line. However, if this index is unable to move above the 50EMA, it is likely to re-test the low of 7214 again.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2893
Target price:
Protective stop :
Outlook
Price has managed to rebound from the Fibonacci 127% low for 3 consecutive days to reach 2892. However the 50EMA is bearish and declining at the moment. We could see price testing this 50EMA resistance point in the next few days. If price is unable to move above this 50EMA resistance point, it is likely to test its low at 2766 again. Stochastic is turning up at the moment. MACD is bearish with both of MACD’s lines below the zero line.
Trading Idea
Wait for better trading idea.
