Market News
- Stocks drifted lower on Tuesday, weighed down by financial stocks as a deepening of the Treasury yield curve inversion raised recession worries and uncertainty over any progress in the intensified trade negotiations.
- Dow Jones index dropped 120 points, closing at 25,777. Both S&P 500 index and Nasdaq Composite index lost more than 0.3%, declining 9 points and 26 points respectively. Bank shares fell broadly. Bank of America fell 1.1% and Citigroup dropped 1.6%.
- The U.S. Treasury yield inverted again, rekindling fears of a looming recession that spurred a sell-off on Wall Street. The spread between the 10- and 2-year Treasury bond yields fell to negative 5 basis points, its lowest level since 2007.
Market Views
- Stocks in Asia were mixed on Wednesday morning, following the overnight sell-off in Wall Street, though deeper worries about the global economy are likely to keep a lid on sentiment in the Asian market. Nikkei 225 index was up 30 points but Hang Seng index fell 16 points.
- On the trade war front side, China’s foreign ministry spokesman, claimed on Tuesday that they had not received any recent telephone call from Washington after Trump said on Monday that Chinese officials had contacted US counterparts and offered to return to the negotiating table to strike a trade deal.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,839
Target price:
Protective stop:
Outlook
The index’s rebound was capped by the 50EMA and the mid-June low resistance level, marking the end of the corrective rally. A bearish long red candlestick followed after a spinning top candlestick formed on last Thursday, reinforcing the bearish trend but the index managed to stay above recent lows. Price is likely to move in sideway manner in between the 50EMA and support at 25,070. A move below 25,070 would target the previous low point at 24,603. Stochastic could be turning down soon and MACD is still bearish at the moment
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 25,701
Target price:
Protective stop:
Outlook
The declining 20EMA is acting as a resistance, capping price’s rebound and marking the end of the consolidation. We expect the index to trend lower and test its previous low at 24,941 again with the steep slope of the 20EMA hinting at the strong downtrend. A move below 24,941 could bring the index lower to 23,890. Stochastic could turn down soon and MACD is still bearish.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7582
Target price :
Protective stop:
Outlook
Price could not break above its previous high of 7780 and has declined lower to 7355. However, price has not been able to break below this low point. A previous attempt was also unsuccessful. Price is likely to move with the resistance at 7780 and support at 7355. Stochastic is turning down and MACD is still bearish at the moment but the slow line has been climbing higher. Momentum indicators are mixed at the moment.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2874
Target price:
Protective stop :
Outlook
The index was capped by its previous high resistance level at 2940 but is supported by the low of 2810. It is likely to move in the range between 2940 and 2810. The 50EMA is falling at the moment, hinting of a declining trend. Price is likely to test the low at 2810 again. A break of 2810 could bring price lower to 2775. Stochastic has turned down while MACD is still bearish with both of the MACD’s lines below the zero line.
Trading Idea
Wait for better trading idea.
