CFD Indices – Strong Banks Earning Drives US Indices Higher

Market News

  • All three major U.S. stock averages gained ground in a broad-based rally, with the S&P 500 and the Nasdaq hitting their highest closing level in more than three weeks due to third-quarter reporting season hit with a spate of upbeat earnings reports.
  • The Dow climbed more than 200 points, closing 237 points higher at 27,024 while S&P 500 gained 29 points, closing 5 points lower from the key 3000 level. The Nasdaq Composite rose 100 points.
  • Stronger-than-expected earnings from major U.S. banks JPMorgan, Citigroup and Wells Fargo further boosted sentiment even as the International Monetary Fund downgraded its 2019 global growth forecast for a fifth time.

Market Views

  • The positive sentiment extended on Wednesday as Britain and EU could reach a deal in time for a leaders’ summit this week. Overnight Wall Streets gains weighted on the market as well. Nikkei 225 index advanced 338 points and Hang Seng index rose 141 points.
  • NAB analysts said President Xi is not going to put his signature to a Phase I deal next month unless or until Washington rescinds the threat of imposing additional tariffs on China on December 15, but overnight comments from Treasury Secretary Steven Mnuchin suggested otherwise.

Dow Jones Index
(CFD Symbol: US30)

Trend :
Recommendation :
Last : 27,001
Target price:
Protective stop:

Outlook
The index is supported by a rising trendline. The recent rebound has moved above the rising 20EMA. As long as price can stay above 20EMA, there is chance for the index to test its previous high resistance at 27,310 or its all-time high at 27,403. Stochastic is moving up at the moment. There was a bullish MACD crossover but the MACD is still bearish.

Trading Idea

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Hang Seng Index
(CFD Symbol: HK50)

Trend :
Recommendation :
Last : 26,676
Target price:
Protective stop:

Outlook
The index rebounded from the base low at 25,230. Price has moved above the rising 20EMA As long as price can stay above 20EMA, we could see price testing its high at 27,440. The range for the past 2 days has been narrow which could be a hint of a stalling uptrend. Stochastic is moving up at the moment. MACD has a bullish crossover in the bearish zone but MACD is still bearish at the moment.

Trading Idea

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Nasdaq 100 Index
(CFD Symbol: USTec)

Trend :
Recommendation :
Last : 7934
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 rising 20EMA. As long as the index stays above the 20EMA support at 7780, 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
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S&P 500 Index
(CFD Symbol: US500)

Trend :
Recommendation :
Last : 2990
Target price:

Protective stop :

Outlook
The index has rebounded from the rising trendline and has moved above 2943 resistance level. Price moved above the 20EMA as well. The 20EMA is rising at the moment, suggesting upward movement ahead. It could test its previous high at 3022 if it can stay above the 20EMA. Stochastic is rising at the moment but MACD is still bearish.

Trading Idea

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