Market News
- Wall Street stocks gained ground in a late rally last night, making back some of the steep losses in the previous session as upbeat retail sales data offset recessionary fears amid the simmering U.S.-China trade tensions.
- The Dow was up 99 points and S&P 500 rose 7 points, while Nasdaq Composite fell 7 points due to an 8.6% plunge in the shares of Tech giant Cisco which reported a 25% drop in China sales, resulting from the impact of the trade tariffs.
- U.S. retail sales surged in July and beat expectations, showing a sign that fears of a global slowdown that have roiled financial markets haven’t soured consumer optimism. The retail giant Walmart reported better-than-expected earnings and raised its outlook for the full year, marking the 20th consecutive quarter of sales gains in the U.S.
Market Views
- Stocks in Asia Pacific were heading for weekly losses on Friday as conflicting messages on the Sino-U.S. trade war only added to worries for the global economy, while talk of aggressive central bank stimulus drove bond yields to fresh lows. Nikkei was up 18 points while Hang Seng rose 129 points.
- Beijing on Thursday vowed to counter the latest tariffs on $300 billion of Chinese goods but called on the U.S. to meet it halfway on a potential trade deal.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,706
Target price:
Protective stop:
Outlook
The index was capped at the mid-June low resistance level, which is also the 50EMA resistance point. If the index cannot surpass this mid-June resistance, it is likely heading towards its previous low point at 24,603 again. 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 : 25,668
Target price:
Protective stop:
Outlook
Price reached a low at 24,941 and rebounded, forming a Harami candlestick pattern yesterday. There is a divergence warning given from the MACD, hinting at the possible pullback. Should price manage to break above 25,763, which is the highest point two days ago, we could see price testing the 20EMA at 26,550. However, a failure move above 25,763 could send the index lower to the Fibonacci 127% support at 24,530. Stochastic is in the oversold region and could turn up soon. MACD is still bearish.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7538
Target price :
Protective stop:
Outlook
The price rebound came to an end after being capped by the 50EMA point. Price tested the downtrend line yesterday but failed to break through. It is testing the downtrend line again. Should price manage to stay well above the trendline, we could see price testing the 50EMA again at 7680. A failure move above the trendline could see price heading towards its previous low at 7217. Stochastic is crossing down. 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 : 2863
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. Price could rebound to the 20EMA and we are expecting the 20EMA to provide the 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.
