Market News
- S&P 500 and Dow suffered their worst tumbles in over a month on Tuesday after data showed U.S. factory activity shrank in September to its weakest in over a decade, ratcheting up fears that the U.S.-China trade war is hobbling the world’s largest economy. The Dow plunged 343 points, S&P 500 lost 36 points and Nasdaq Composite declined 90 points.
- Trump once again lashed out at Fed on Tuesday, this time in the wake of weak data on the manufacturing sector, saying the central bank has kept interest rates “too high” and that a strong dollar is hurting American factories.
- A report from the Institute for Supply Management on Tuesday showing U.S. manufacturing activity plunged to its weakest level in a decade last month, reflecting a continuing decrease in business confidence. Fed is due to release its own figures on U.S. manufacturing output for September on Oct 17.
Market Views
- Stocks in Asia retreated on Wednesday morning amid renewed fears of a global economic slowdown with the two largest economies in the world showing contraction in their economic activities as measured by PMI and ISM data. Nikkei 225 index fell 142 points and Hang Seng index tumbled 175 points.
- North Korea carried out at least one more projectile launch on Wednesday after announcing it will hold working-level talks with Washington at the weekend.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,615
Target price:
Protective stop:
Outlook
The index has been moving within a Flag pattern after almost reaching its all-time high resistance. Price fell below 20EMA last night. It is now sitting at the lower boundary of the Flag, which is also the Fibonacci 38% correction point and the resistance-turned-support level. If price break and close below this strong support, price is likely to head towards 25,970. Any reversal signal from this level would target the upper boundary of the Flag. Stochastic is near to the oversold region but is still falling at the moment. MACD is still bullish.
Trading Idea
Wait for a better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 25,932
Target price:
Protective stop:
Outlook
The price decline from 27,443 could have ended as there was a sign of rebound, the one white soldier candlestick pattern, formed near the key Fibonacci 62% retracement point. Price is currently sitting near to the Fibonacci support and we would like to see a follow-through candlestick to confirm the reversal pattern. A move below 25,770 would invalidate the reversal pattern and could target for the low at 24,940. Stochastic is at the oversold region and could turn up soon and MACD is still bullish at the moment.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7689
Target price :
Protective stop:
Outlook
Price closed below the 7780 resistance level last night and is being resisted by the 20EMA. With the falling 20EMA hinting or further price decline, we see further price move could lead to a test of 7400 if price falls stays below 7780. Price will need to move above 7823 to be bullish again. Stochastic is moving down at the moment and MACD is still bullish.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2942
Target price:
Protective stop :
Outlook
A bearish red candlestick that formed last night has brought the index to sit at 2945 breakout level after being capped at 2993. Price has moved below 20EMA and could be moving within the range of 2945 to 2993. This index is at a critical juncture. The index needs to stay above 2935 to be bullish. A move below 2935 would to a test of 2870. Stochastic is still falling at the moment but MACD is still bullish.
Trading Idea
Wait for better trading idea.
