Market News
- Stocks in Wall Street fell on Tuesday, snapping a 3-day winning streak of the three major indices as recession fears lingered and bond yields dipped. Dow Jones dropped 173 points, S&P 500 index was down 23 points and Nasdaq Composite index slipped 54 points.
- Bank shares were traded lower as the benchmark 10-year Treasury yield pulled back about 5 basis points on Tuesday. For the past two weeks whenever yields move down, stocks move down, the director of NYSE floor operations at UBS said.
- Trump said on Tuesday his administration was considering various potential tax cuts, seeking to play down market anxieties that the world’s top economy could be heading for a recession. He also said the word “recession” is a word that’s inappropriate, he think we are very far from a recession.
Market Views
- Asia Pacific stocks declined on Wednesday as fresh worries about a global recession led investors to dump risky assets, with Trump showing no signs of backing down in his trade war with China. Hang Seng index fell 3 points and Nikkei 225 index dropped 80 points.
- Investors are also focusing on the release of the Federal Reserve’s minutes from its July meeting, which scheduled for release at 2 p.m. ET today.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,971
Target price:
Protective stop:
Outlook
This index’s rebound for the past three consecutive days came to an end after hitting the 20EMA resistance point. The resistance at the mid-June low resistance level also provided a resistance as well. If the index cannot surpass the mid-June resistance, it is heading towards its previous low point at 24,603 again, while a break above the resistance looks less likely at the moment. Stochastic is rising but MACD is bearish with both of MACD’s lines below the zero line.
Trading Idea
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Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,191
Target price:
Protective stop:
Outlook
Price reached a low at 24,941 and rebounded, forming a Harami candlestick pattern last Thursday. Price has been testing the 20EMA resistance point for three consecutive days. An indecision Doji candlestick was formed yesterday. We expect the 20EMA to provide resistance and to halt the rebound for a test lower to 24,941 again, while an upside break of 20EMA will target the gap tip at 27,470. Stochastic is turning up but MACD is still bearish
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7680
Target price :
Protective stop:
Outlook
Price is now hovering around the flat 20EMA. With the flat 20EMA, we are expecting price consolidation within the Triangle pattern. A move above the Triangle could see price heading towards 7780 or 7900. A break of the triangle to the downside could see price dipped to 7195. Stochastic is turning up again 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 : 2904
Target price:
Protective stop :
Outlook
The three-day rebound was capped at the 50EMA resistance point, which is also the upper edge of the Triangle pattern. The 50EMA is currently flat. We expect the index to consolidate within the Triangle pattern. A move above the Triangle would target the top at 2970 while a movement below would target 2775. Stochastic is rising at the moment but MACD is still bearish with both of the MACD’s lines below the zero line.
Trading Idea
Wait for better trading idea.
