Market News
- U.S. stocks surged on Thursday on expectations of a thaw in trade tensions after Washington and Beijing agreed to hold high-level talks in early October in Washington, cheering investors hoping for a trade war thaw as new U.S. tariffs on Chinese consumer goods chip away at global growth.
- Dow Jones jumped 372 points. S&P 500 rose 38 points, closing around 1.7% from its record high and Nasdaq Composite climbed 139 points, led by a 2.1% gain in the tech sector. Chief market strategist at TD Ameritrade warned as we are closer to 3,000 on the S&P 500 as he thinks it will be hard to break through this level unless there is some news other than the trade talk.
- William Reinsch, a former senior U.S. Commerce Department official, said the trade talks could drag well into 2020 since the two sides are still far apart on key issues, such as Washington’s demand that Beijing codify its reforms into law.
Market Views
- Asian stocks tracked global peers and rose on Friday morning amid signs of easing U.S.-China trade tensions and as firm U.S. ADP employment data bolstered risk appetites. Nikkei 225 index edged up 126 points while Hang Seng index rose 158 points.
- U.S. government’s monthly nonfarm payrolls data for August is due later today at 8:30p.m. Singapore time, where investors will look for signs about the health of the U.S. economy.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,770
Target price:
Protective stop:
Outlook
Price moved and closed above the mid-June low resistance level which is also near to the Fibonacci 62% retracement point with a bullish long green candlestick last night. 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 : 26,740
Target price:
Protective stop:
Outlook
Price rebounded two days ago with a bullish long candlestick and a gap up. Price also managed to close above the 20EMA that had 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
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7866 :
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 and closed above 7780 last night and is moving higher. Price could test its high at 8035 again as long as price stay above 7780. Stochastic has turned up again. MACD is still bearish at the moment but the slow line is approaching the zero line.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2973
Target price:
Protective stop :
Outlook
Price broke and closed above the consolidation zone high at 2940 last night and this could mark the end of the consolidation phase. The 20EMA is also turning up. 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.
