Market News
- The Dow Jones index fell 391 points, or 1.49%, to 25,896, while the S&P 500 index dropped 36 points to 2,882.44. The Nasdaq Composite index was down 95 points to 7,863 as bond yields dropped below 1.7%, raising concerns about the state of the US economy.
- The Chinese central bank, PBOC, set the daily midpoint for Yuan at 7.0211 per dollar, the third consecutive session below the psychological level of 7 per dollar on Monday. A weaker currency makes a country’s exports cheaper and the US administration has consistently complained that a cheaper Yuan would give China a trade advantage.
- Also hurting stocks were the intensified Hong Kong protests, which soured investor sentiment already aggravated by the trade dispute between Washington and Beijing. Hong Kong International Airport had to cancel flights on Monday, citing serious disruptions due to intensifying protests.
Market Views
- Stocks in Asia traded lower on Tuesday morning as overnight drop in the US market coupled with worries over Hong Kong after protests in the last few days turned increasingly violent. The Hang Seng index was down 289 points in the morning while Nikkei 225 index was down 262 points.
- Steve Eisman, the investor of “Big Short” fame, said last week the protests are his biggest worry with the global economy, calling the protest a possible “black swan event that could derail the market.”
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,938
Target price:
Protective stop:
Outlook
A four consecutive days of rally came to an end last night after the index failed to move past an important resistance. The rebound was capped by the mid-June low. The 50EMA is falling and pointing downward 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 has moved out of the oversold extreme but Stochastic is still weak. MACD is 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 : 25,399
Target price:
Protective stop:
Outlook
Price has declined for 3 consecutive days after reaching a high at 26,354. Price is currently testing the previous low of 25,457. A break of this support could see the index heads towards the Fibonacci 127% support at 24,530. 20EMA is bearish and its gradient steep, which is a hint of a strong bearish trend. Stochastic is in the oversold region but is weak. MACD is still bearish.
Trading Idea
Sell 25,400 with stop at 26,010 for 24,530
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7576
Target price :
Protective stop:
Outlook
Price broke above the downtrend line after hitting a low of 7214 but the rally was capped by the 50EMA line at 7700. The 50EMA is bearish and falling at the moment. This index is likely to be capped by the 50EMA point but supported by the rising trend line. Stochastic is rising from the oversold extreme but MACD is still bearish with both of MACD’s lines below the zero line.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2886
Target price:
Protective stop :
Outlook
Price had managed to rebound from the Fibonacci 127% low but the rally was capped by the falling 20EMA at 2940. The 20EMA is bearish and declining at the moment, indicating a bearish trend and we are expecting this index to move lower if it is unable to move above the 20EMA resistance. Stochastic is turning up at the moment but MACD is bearish with both of MACD’s lines below the zero line
Trading Idea
Wait for better trading idea.
