Market News
- Stocks closed little changed on Friday as investors took a breather following a wild month of trading. Dow Jones index was up 41 points; S&P 500 index ended 1 point higher while Nasdaq Composite index fell 10 points. U.S. markets are closed Monday for the Labour Day holiday.
- U.S. tariffs on US$110 billion in Chinese imports took effect on Sunday, including footwear, smart watches and flat-panel televisions, and a set of Chinese retaliatory tariffs on American crude also took effect. Trump said Washington and Beijing would still meet for talks later this month.
- The data of China’s official purchasing managers’ index (PMI) that published on Saturday showed factory activity in China shrank in August for the fourth month in a row, further evidence of hit to the world’s second-largest economy from trade war.
Market Views
- Stocks in Asia slipped on Monday morning, as new tariffs kicked in on both sides of the ongoing U.S. – China trade dispute and Hong Kong experienced yet another weekend of violence protest. Nikkei 225 index was lower by 50 points and Hang Seng index plunged 193 points.
- Tension remains high in Hong Kong, with police and protesters clashing in some of the most intense violence since unrest erupted more than three months ago over concerns Beijing is undermining democratic freedoms in the territory.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,322
Target price:
Protective stop:
Outlook
Price closed with a shooting star candlestick pattern after testing the mid-June low resistance level as well as the Fibonacci 62% retracement point last Friday. Price gapped down today. Let’s see if this gap can be closed at the end of today. If the gap cannot be closed, price is likely to be resisted at this level and we could see price decline back to test its previous low at 25,280. Stochastic is still rising but MACD is still bearish at the moment.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 25,523
Target price:
Protective stop:
Outlook
Price tested the declining 20EMA again on last Friday, but the attempt was not successful as price could not break above the 20EMA resistance level again. We expect the index to trend lower and test its previous low at 24,941 again as the steep slope of the 20EMA is hinting at a strong downtrend. A move lower than 24,941 would target for 23,990. Stochastic is turning down at the moment. MACD is still bearish and a bearish MACD crossover is likely in the near term.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7621
Target price :
Protective stop:
Outlook
Price is still moving within a previous high and previous support point. Price is likely to move within the resistance at 7780 and support at 7355 until it can move out of this range. Stochastic has turned up again, but Stochastic is not strong at the moment. MACD is still bearish with both of MACD’s lines now below the zero line.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2907
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 until there is a break in either direction. The 20EMA is falling at the moment, hinting of a declining trend. Price is likely to test the low at 2810 again. Stochastic has turned up but Stochastic is still weak and flat at the moment. MACD is still bearish with both of the MACD’s lines below the zero line.
Trading Idea
Wait for better trading idea.
