Market News
- Wall Street stocks paused on unsettled U.S.-China trade negotiations and investors turned their focus on the third-quarter earnings season. All three major indices closed in the red, snapping a three-day winning streak. Dow Jones closed 29 points lower, S&P 500 slid 4 points and Nasdaq Composite declined 8 points.
- Hopes dimmed that recent trade negotiations between the Washington and Beijing would bear fruit, as China indicated further talks were needed and U.S. Treasury Secretary Steven Mnuchin said the next round of tariffs on Chinese imports are on track to go into effect on Dec. 15 if a trade deal is not been reached by then.
- Third-quarter reporting season hit the ground running on Tuesday, with major U.S. banks expected to report a 1.2% decline in earnings, their first year-on-year drop in three years, due in part to low interest rates and trade tensions.
Market Views
- Stocks in Asia Pacific were mixed in Tuesday morning as investors held out hope that Britain still had a chance to avoid a messy exit from the European Union at key negotiations this week. Nikkei 225 index climbed 375 points while Hang Seng index slipped 22 points.
- The focus has now shifted to Europe where officials from Britain and the EU will meet at a make-or-break summit on Thursday and Friday that will determine whether or not Britain is headed for a so-called no-deal Brexit. The chance of a no-deal Brexit is around 10% to 20% given the parliamentary intervention, said head of investment strategy and chief economist at AMP Capital Investors in Sydney.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,843
Target price:
Protective stop:
Outlook
Price is supported by a rising trendline. The recent rebound has moved above the 20EMA. As long as this trendline holds, we are likely to test the previous high resistance at 27,310. However a move and close below the trendline would target the previous trough at 25,080. Stochastic is moving up at the moment. There was a bullish MACD crossover but the MACD is still bearish.
Trading Idea
Wait for a better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,549
Target price:
Protective stop:
Outlook
The index tested the low three days ago and managed to bounce back higher with a strong long candle that moved above the 20EMA last Friday. The index may have formed a base at 25,230. The 20EMA is rising at the moment. As long as the support at 20EMA holds, price is likely to test its previous peak at 27,440 again. Stochastic is moving up at the moment. MACD has a bullish crossover in the bearish zone and MACD is still bearish at the moment.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7862
Target price :
Protective stop:
Outlook
The index was capped by the 7780 resistance level previously and last Friday this index had moved above the 7780 resistance and the 20EMA. As long as the index stays above the 20EMA support at 7760, we could expect further price rally towards 7980. The index will only turn bearish if it breaks below the rising trendline. Stochastic is moving higher at the moment but MACD is still bearish.
Trading Idea
Buy 7845 with stop at 7770 for a test of 7930
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2970
Target price:
Protective stop :
Outlook
The index has rebounded from the rising trendline and has moved above 2943 resistance level. Price moved above 20EMA as well but is capped at 2993. It could be ranging in between 2993 and the trendline. Price will need to break above 2993 for a test of its previous high at 3022. Stochastic is rising at the moment but MACD is still bearish.
Trading Idea
Wait for better trading idea.
