Market News
- Wall Street’s three major indexes rebounded on Wednesday, after robust economic data from China and easing tensions in Hong Kong with British lawmakers’ approval of a law to delay Brexit providing relief to investors worried about global growth. Dow Jones jumped 237 points; S&P 500 was up 31 points and Nasdaq Composite 102 points.
- Lawmakers in U.K. defeated British Prime Minister Boris Johnson in parliament on Wednesday, moving to prevent him from taking the country out of the European Union without a formal agreement on October 31 and rejecting his snap election request two weeks before Brexit deadline.
- Bank stocks got a boost as well as the U.S. yield curve uninverted, with the 10-year Treasury rate trading above its 2-year counterpart. Bank of America and Citigroup gained more than 1.3% each while J.P. Morgan Chase advanced 1.2%.
Market Views
- Asian stocks perked up in Thursday morning trade, as apparent progress in the political crises in Britain and Hong Kong gave investors’ confidence a shot in the arm. An announcement from China commerce ministry that Sino-U.S. trade talk has been scheduled for early October lifted sentiments as well. Nikkei 225 index jumped 481 points and Hang Seng index rose 99 points.
- Hong Kong leader Carrie Lam withdrew a contentious extradition bill that had triggered months of often violent protests in the Chinese-ruled city. This released the feared that the protests could hinder U.S.-China trade talks.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,656
Target price:
Protective stop:
Outlook
Price moved above the mid-June low resistance level which is also near to the Fibonacci 62% retracement point currently with a bullish long green candlestick. As long as price can close above this resistance level today, we could see the index heading up to test its high at 27,400 again. Stochastic is still rising at the moment. MACD is still bearish but the slower line is climbing higher and is approaching the zero line.
Trading Idea
Buy 26,560 for a rally to 27,240 with a stop below 26,060
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,675
Target price:
Protective stop:
Outlook
Price rebounded yesterday with a bullish long candlestick and a gap up. Price managed to close above the 20EMA that consistently resisted price rally since August. We expect price to test the gap resistance which is also the Fibonacci 62% retracement point at 27,490. Stochastic has turned up again. MACD is still bearish at the moment, but the slower line is climbing higher and is approaching the zero line.
Trading Idea
Buy 26,520 with stop below 25,900 for a rally to 27,450
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7813
Target price :
Protective stop:
Outlook
Price has been ranging from a previous high resistance at 7780 and a previous support point at 7355 over the last month. The index broke above 7780 today and is moving higher. Price could test its high at 8035 again if price can close above the resistance level today. Stochastic has turned up again, but Stochastic is not strong at the moment. MACD is still bearish at the moment.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2966
Target price:
Protective stop :
Outlook
Price broke the consolidation zone high at 2940 and this could mark the end of the consolidation phase. If price can close above the breakout point today, we could see the index testing its high at 3028 again. Stochastic is rising at the moment. MACD is still bearish but the slower line is rising towards its zero line.
Trading Idea
Wait for better trading idea.
