Market News
- Dow tanked 800 points in worst day of 2019, giving up the entire rebound from a sell-off earlier in August and fell to a two-month low after the bond market flashed a troubling signal about the U.S. economy. The S&P 500 slipped 85 points and Nasdaq Composite fell 242 points. The declines were led by bank stocks.
- On Wednesday, the yield on the benchmark 10-year Treasury note briefly fell below the 2-year rate, an odd bond market phenomenon that was widely seen by investors as a sign that a recession is coming. The benchmark 30-year Treasury bond was also posted a new record low as investors rushed to long-term safe haven assets.
- Tom Essaye, founder of The Sevens Report said on Wednesday that we must expect a recession anywhere from six-to-18 months from today which will drastically, and negatively, shift our medium-to-longer term outlook on the broader markets.
Market Views
- Asian stocks slumped to more than two-month lows in early trade session on Thursday, tracking the Wall Street slide as an inverted U.S. bond yield curve sent a flashing warning to investors about rising recession risks. Nikkei 225 index fell 250 points while Hang Seng index was up 67 points.
- The moves came amid rising fears over the global economy, with China reporting weaker than expected industrial output for July and Germany posting a negative gross domestic print for the second quarter, hinting Europe’s largest economy is on the verge of falling into a recession.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,566
Target price:
Protective stop:
Outlook
The index was capped at the mid-June low resistance level. The 20EMA is also providing another layer of resistance. The 20EMA 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. The index reached 25,370 last night and is likely to continue towards 24,603 in the coming days. Stochastic has moved out of the oversold extreme but Stochastic is declining again. MACD is bearish with both of MACD’s lines below the zero line.
Trading Idea
Sell 25,900 for 24,610 with stop above 26,210
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 25,267
Target price:
Protective stop:
Outlook
Price broke below the previous low of 25,457 yesterday with a bearish long red candlestick. A break of this support could see the index heads towards the Fibonacci 127% support at 24,530. The previous low at 25,457 is likely to cap this index advance. The 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
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7521
Target price :
Protective stop:
Outlook
The price rebound came to an end after being capped by the 50EMA point. Last night, price closed with a bearish long red candlestick, which invalidated the Flag pattern formed earlier. Price also broke below the downtrend line. We are expecting the downtrend line to provide resistance. Price could head towards its previous low at 7217. Stochastic may be crossing down soon. 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 : 2854
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 to 2780 if it is unable to move above the 20EMA resistance. Stochastic is weak and is turning down again. MACD is bearish with both of MACD’s lines below the zero line.
Trading Idea
Wait for better trading idea.
