Market News
- The benchmark S&P 500 rose within striking distance of a record high on Monday, climbing 20 points to close above 3000, as further signs of progress toward resolution of the Sino-U.S. trade negotiation boosted shares in sectors sensitive to trade and the global economy. Dow Jones gained 57 points and Nasdaq Composite was up 73 points.
- President Trump continued to strike optimistic tones, saying efforts to end a prolonged trade war were going well, while White House adviser Larry Kudlow said tariffs on Chinese goods scheduled for December could be withdrawn if talks go well.
- U.S. investment strategist at Allianz Global Investors said stocks have benefited from the steepening U.S. Treasury yield curve as well as better-than-expected corporate earnings thus far.
Market Views
- Asian markets edged ahead on Tuesday morning amid cheery chatter about the chance of U.S.-China trade deal, while investors were sanguine yet another vote on Brexit would still avert a hard exit. Hang Seng index rose 44 points. Japan is closed for a holiday today.
- Key officials in the Trump administration are working on a trade deal with Beijing while others continue to hammer China on other issues, raising questions about how well the administration is coordinating its China policy.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,872
Target price:
Protective stop:
Outlook
Last Friday, the index had undergone a correction after being resisted at 27,125 resistance zone. It is now sitting at crucial rising 20EMA support. Price will need to move above 27,125 for a test of 27,310 and its all-time high at 27,403. A close below 20EMA at 26,760 could see the index test the rising trendline. The index will turn bearish only if price close below the trendline. Stochastic could cross down soon at the overbought region and MACD is still bearish at the moment.
Trading Idea
Wait for a better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,829
Target price:
Protective stop:
Outlook
The index has rebounded from the base low at 25,230 and has moved above the rising 20EMA. A bearish engulfing candlestick pattern was formed last Friday. However, there was no followed-through candlestick to confirm the reversal pattern. A move below the 20EMA at 26,470 would target the low at 25,900 or the base low at 25,230. Price will need to move above 27,055 for a test of its previous high at 27,440. Stochastic could be crossing down soon and MACD is still bearish at the moment.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7957
Target price :
Protective stop:
Outlook
A bearish candlestick that formed last Friday has confirmed the reversal pattern. We could see an accelerating of the price decline to test 7780-7815 support zones if price close below the 20EMA at 7834. A move above 7984 would invalidate the reversal pattern and we could see price moving higher to test its all-time high at 8035. Stochastic is at overbought extreme and could turn down soon but MACD has turned bullish with both its line above the zero line.
Trading Idea
Wait for better trade idea.
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 3011
Target price:
Protective stop :
Outlook
The index has been moving higher after rebounding from the rising trendline. The 20EMA is rising at the moment and is acting as a support. Price is heading towards its overhead resistance at 3022 and even its all-time high at 3028. Stochastic looks strong at the overbought region and could turn down soon. MACD is still bearish at the moment but the slower line is climbing towards the zero line.
Trading Idea
Wait for better trading idea.
