Market News
- S&P 500 hit a record high on Monday, closing 16 points higher to 3039, while the Nasdaq ended the session less than 5 points below its closing high as a more civil tone between U.S. and China lifted hopes for a possible trade deal and investors looked toward a Fed rate cut later this week. Dow Jones also gained 132 points.
- Trump said on Monday he expected to sign a significant part of a trade deal with Beijing ahead of schedule but did not elaborate on the timing, building on optimism from Friday when Washington said it was “close to finalizing” some parts of a trade deal.
- Fed is expected to follow the global central banks to impose the easing monetary policy due to the worries of global economic slowdown at its two-day policy meeting beginning on Tuesday, with high expectations that it will cut interest rates for a third time this year.
Market Views
- Asian shares were mixed on Tuesday morning after Wall Street hit all-time peaks amid hopes of progress in Sino-U.S. trade negotiations and for another dose of policy stimulus from Fed this week. Nikkei 225 index rose 107points while Hang Seng index slipped 99 points.
- Agricultural products are a major area of discussion in the trade talks. China wants U.S. to cancel some existing tariffs on Chinese imports, according to people briefed on high-level telephone discussions on Friday, in return for pledging to step up its purchases of American commodities like soybeans.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,107
Target price:
Protective stop:
Outlook
The index is consolidating within a triangle pattern. It is now near to its overhead declining trendline resistance. Price will need to break above this level for a test to its all-time high at 27,403. The 20EMA is rising at the moment. As long as price holds above 20EMA, there is chance for price to test the declining trendline. Stochastic is moving up at the moment and MACD is still bullish.
Trading Idea
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Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,889
Target price:
Protective stop:
Outlook
The index is moving within a rising channel. The 20EMA coincides with the lower boundary of the channel, acting as a layer of support. Price will need to break above the channel to test the gap resistance at 27,443. A move below the channel and 20EMA would target for 25,900. Both Stochastic and MACD are showing potential divergence warning. The MACD is likely to have a bearish crossover which hints at possible downward movement.
Trading Idea
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Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8101 :
Target price :
Protective stop:
Outlook
The index broke above its all-time high of 8035 with a bullish candlestick on Monday. It is now moving within a rising channel. The 20EMA is rising at the moment. Price could be on the way moving higher towards its next resistance at 8256. The index will only turn bearish if it breaks below the channel. Stochastic is rising at the moment and MACD is still bullish.
Trading Idea
Wait for better trade idea.
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 3028
Target price:
Protective stop :
Outlook
Price broke above its all-time high resistance of 3028 with a bullish candlestick on Monday. It will need to stay above 3028 for further rally towards the next resistance at 3067. A failure move to sustain above 3028 would target for rising 20EMA at 2991. Stochastic looks strong and is still rising at the moment and MACD is bullish.
Trading Idea
Wait for better trading idea.
