Market News
- Cancellation of Chinese officials’ agriculture visits to farms in Montana, which were seen as potentially leading to increased purchases of American soybeans and pork, caused Wall Street’s main stock indexes to fall as early optimism about the talks faded. Dow Jones plunged 159 points, S&P 500 fell 14 points and Nasdaq Composite lost 65 points.
- U.S. Trade Representative’s office issued a brief statement characterizing the two days of talks with China as “productive.” China’s Commerce Ministry also described the talks as “constructive”, and said they also had a good discussion on “detailed arrangements” for the high-level talks in October.
- However, investors were still jittery as Beijing officials cancelled a visit to U.S. farms in Montana and headed back to China earlier than planned, dampening expectations of a trade deal being reached. Trumps had told reporters on Friday he was “not looking” for a partial deal.
Market Views
- Shares in Asia Pacific were mixed in Monday morning on hopes of an interim Sino-U.S. tariff deal after the two countries described their talks as “productive” and “constructive”. Nikkei 225 is closed as Japan is on a holiday while Hang Seng index slipped 189 points.
- Washington has removed tariffs from more than 400 Chinese products in response to requests from American companies.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,005
Target price:
Protective stop:
Outlook
A tweezer top was formed on 13 Sept with price was near to its all-time high. A small gap was created last Monday, acting as a resistance to the price rally. The index is now in a correction and we could see price pullback to 20EMA at 26,800. Price will need to move above 27,320 to be bullish again. A move below 26,800 could lead to a test of 26,520, which is the Fibonacci 38% retracement point and the resistance-turned-support level. Stochastic has turned down but still look strong at the moment. MACD is also bullish.
Trading Idea
Wait for a better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,279
Target price:
Protective stop:
Outlook
The index has been falling for five consecutive days after being capped by Fibonacci 62% resistance point, which is also the upper gap resistance. Price has moved below 20EMA, which is also near to Fibonacci 38% retracement level. Price could be on the way down to test 25,900 or 25,500. Stochastic has turned down from the overbought extreme but MACD is still bullish at the moment.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7844
Target price :
Protective stop:
Outlook
Price managed to stay well above the breakout level of 7780 since 5 September. The index has been consolidating around the range from 7780 to 7970. The 20EMA is rising and is providing a support to price. As long as price hold above 7780, it is likely to break above 7970 resistance for a test to its previous all-time high at 8035. Stochastic has turned down but still look strong at the moment. MACD is also bullish with both lines above the zero line.
Trading Idea
Look to buy dip to 7830. Stop below 7710 for a test to 7980
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2999
Target price:
Protective stop :
Outlook
This index has been moving higher since 5 September and is trading near to its previous all-time high at 3028. Price is now in a consolidation zone within the range of 2977 to 3022. The 20EMA is rising and is providing a layer of support. Price will need to break above 3022 for a test to its recent peak or even higher at 3095. Stochastic is still look strong at the moment and a bullish crossover is likely in the coming session. MACD has turned bullish.
Trading Idea
Wait for better trading idea.
