Market News
- The S&P 500 index ended little changed on Tuesday, with a rally in energy and industrial shares countering a drop in the technology and real estate sectors as investors favoured value over growth. Dow Jones index rose 73 points while Nasdaq Composite index fell 3 points.
- The trade negotiations between the two economic powerhouses continue to weigh on market sentiment. China has offered to increase American agricultural purchases in exchange for a delay in tariffs and easing of a supply ban against Chinese tech giant Huawei, according to South China Morning Post.
- U.S. bond yields jumped on Wednesday, as the 10-year Treasuries yields rose more than 10 basis points to a one-month high of 1.745%. Fed is also widely expected deliver an interest rate cut next week.
Market Views
- Stocks in Asia Pacific were higher on Wednesday morning as hopes of diminishing U.S.-China tensions and reduced risk of no-deal Brexit prompted investors to take profit in risk-off trade ahead of key central bank policy meetings. Nikkei 225 index gained 122 points and Hang Seng index rose 103 points.
- Oil prices held firm near their highest levels in six weeks despite small losses on Tuesday after Trump fired national security adviser John Bolton. These raised speculation of improvement in U.S.-Iran relations and an eventual return of Iranian crude exports to the market.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,855
Target price:
Protective stop:
Outlook
Since 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 on Thursday night, price has been moving higher. We see the index heading up to test its high at 27,400 again. However, the upward momentum is weakening. Stochastic is still rising and MACD has turned bullish with both its lines above the zero line. Both momentum indicators are still hinting of further price rally.
Trading Idea
Wait for pullback to enter.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,785
Target price:
Protective stop:
Outlook
Price has consolidated for the past three days after breaking above the 20EMA that had consistently resisted price rally since August last Wednesday. Price is now near to Fibonacci 50% resistance point and if price cannot break through this level, we could see the index pullback and test the 20EMA at 26,270 again. A move above 27,000 would target for 27,490 which is the gap resistance and the Fibonacci 62% retracement point. Stochastic has turned up. MACD could turn bullish soon with its slow line close to the zero line.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7791
Target price :
Protective stop:
Outlook
This index broke and closed above 7780 last Thursday night and has been moving higher since. There was a price correction for the past three days and price dipped below the 7780 breakout point last night. There could be a danger of a peak having been reached. We will need to monitor the reaction around 7780 for further clues. Stochastic has turned up again. MACD is bullish at the moment. Both momentum indicators are hinting of further price advance.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2974
Target price:
Protective stop :
Outlook
Price broke and closed above the consolidation zone high at 2940 since last Thursday 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 as long as price stays above 2940. Stochastic and MACD have turned bullish. Both momentum indicators are hinting of further price upside.
Trading Idea
Wait for better trading idea.
