Market News
- Both S&P 500 and Nasdaq slipped from record highs on Monday as prospects of a quick resolution to the U.S.-China trade war dimmed following comments from President Trump, while escalating violence in Hong Kong added to the downbeat sentiment. A jump in Boeing shares helped the Dow Jones eke out a gain.
- Boeing, the biggest weight in the 30-component of the Dow, jumped 5.0% after the plane maker said it expects its grounded 737 MAX to resume commercial service in January.
- Continuing violence in Hong Kong also hit sentiment after police shot and wounded a protester in the 24th straight week of pro-democracy unrest in the Chinese-ruled territory.
Market Views
- Asian markets got off to a sluggish start on Tuesday morning amid uncertainty over both the Sino-U.S. trade negotiations and the domestic political situation in Hong Kong. Hang Seng index fell 104 points but Nikkei 225 index was up 38 points.
- Caution ruled ahead of a speech by Trump to the Economic Club of New York later in the day. Investors will be watching this event for clues on the Sino-U.S. Phase one trade deal. Trump had said negotiation are moving along “very nicely” but roll back on tariffs are not on the agenda which could derail the phase 1 deal.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,656
Target price:
Protective stop:
Outlook
The index broke above the triangle pattern to close above its all-time high of 27,403 and continued with a new historical high at 27,773 last Thursday. Last night, price fell but was being supported at the Fibonacci 127% projection level, unfolding into a potential Hanging Man candlestick pattern. We would like to see price to close below 27,502 to confirm the reversal. Price will need to break above 27,773 for further rally towards the Fibonacci 161.8% projection target at 27,978. Stochastic is still strong at the moment and MACD is bullish.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,858
Target price:
Protective stop:
Outlook
There was a Harami reversal pattern formed on Friday. Yesterday, price gapped down and closed lower, confirming the reversal pattern. It broke below the gap support of 27,600 as well as the 20EMA. We expect a further price decline towards 26,490 and if this level could not hold, we are likely to see further downside at 25,540. There was a divergence warning given from the Stochastic and MACD histogram waring of an index high. Stochastic is moving down at the moment. MACD is still bullish but just had a bearish crossover.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8227 :
Target price :
Protective stop:
Outlook
The index made a new all-time high of 8272 on Thursday night and has remained in a rising channel and above the breakout level for the past twelve days. Price can continue to rally towards 8295. However, the range for the past few days has been narrowing, which is giving concern. The index will only turn bearish if it breaks below the rising channel. Stochastic is in its overbought extreme. MACD is bullish and both its lines are rising.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 3083
Target price:
Protective stop :
Outlook
Price made a new all-time high of 3097 last Thursday after breaking above an Ascending Triangle pattern. It has managed to stay above the breakout level and is trading above the gap support at 3065. The overhead resistance lies at 3180. A move below the gap support at 3065 is likely to bring price lower to test the 20EMA at 3045 or even lower at the breakout level. Stochastic is still strong at the moment. MACD is also bullish but just had a bearish crossover.
Trading Idea
Wait for better trading idea.
