Market News
- Wall Street’s main indexes suffered their sharpest one-day declines in nearly six weeks last night after employment and manufacturing data suggested that the prolonged Sino-U.S. trade war is taking an increasing toll on the American economy.
- Dow Jones slumped nearly 500 points in a single day, closing 494 points lower to 26,078. S&P 500 slipped 52 points and Nasdaq Composite fell more than 100 points, closing 123 points lower to 7785.
- The ADP National Employment Report showed private payrolls growth in August was not as strong as previously estimated, suggesting that businesses have turned more cautious in their hiring and small enterprises have become “especially hesitant.”
Market Views
- Asian stocks already under pressure from growing global growth fears tumbled on Thursday morning, following the overnight slump in New York markets due to the new trade war between U.S. and European Union. Nikkei 225 index tumbled 440 points and Hang Seng index declined 162 points.
- Adding to trade concerns, U.S. won approval on Wednesday to levy import tariffs on $7.5 billion worth of European goods over illegal EU subsidies handed to Airbus, threatening to trigger a tit-for-tat transatlantic trade war.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,090
Target price:
Protective stop:
Outlook
The index broke below the Flag pattern and triggered a sharp selloff last night. It moved below the resistance-turned-support level which is also the Fibonacci 38% correction point. The 20EMA is falling at the moment, pointing at potential further price decline. Price is now sitting at the key Fibonacci 62% level. As long as price stay above this level, price is likely to have a slight rebound to test the lower boundary of the Flag, or even 26,510. A move below 25,970 would target the previous trough at 25,080. 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 : 25,928
Target price:
Protective stop:
Outlook
The price decline from 27,443 has brought price down to a low of 25,740 yesterday. Price failed to form a follow-through candlestick yesterday after the formation of one white soldier pattern, which invalidated the reversal pattern. Price could be forming a base low at 25,740. As long as this level holds, price could test the 20EMA at 26,260 or Fibonacci 38% at 26,490. A move below 25,740 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
Buy at 25,890 for 26,485 with stop at 25,580.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7549
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 of further price decline, we see further price move could lead to a test of 7400 or even lower at its previous low at 7220. Price will need to move above 7823 to be bullish again. Stochastic is moving down at the moment but MACD is still bullish.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2887
Target price:
Protective stop :
Outlook
Price fell for second consecutive days and a bearish red candlestick that formed last night has brought the index to break below 2945 breakout level. Price is now near to Fibonacci 62% retracement level of 2870. As long as price stays above 2870, price could have a slight rebound back to test 2945, which is now turned to a resistance level. Price could test 2810 if price is unable to sustain above 2870. The index needs to stay above 2935 to be bullish. Stochastic is still falling at the moment but MACD is bullish.
Trading Idea
Wait for better trading idea.
