Market News
- Wall Street’s main indexes ended Wednesday’s session lower on concerns that a “phase one” trade deal between U.S. and China may not be completed this year, while minutes from Fed’s October policy meeting appeared to offer little help. Dow Jones slipped 112 points, S&P 500 was down 11 points and Nasdaq Composite fell 43 points.
- Trump and U.S. Trade Representative Robert Lighthizer recognized that rolling back tariffs for a deal that fails to address core intellectual property and technology transfer issues will not be seen as a good deal for U.S.
- Completion of a “phase one” U.S.-China trade deal could slide into next year as Beijing presses for more extensive tariff rollbacks, and the Trump administration counters with heightened demands of its own. Trump has set the deadline for tariffs to go higher on 15 December.
Market Views
- Shares in Asia Pacific slid on Thursday morning as a fresh row between Washington and Beijing over U.S. bills on Hong Kong could complicate their trade negotiation and delay a “phase one” deal that investors had initially hoped to be inked by now. Hang Seng plunged 428 points and Nikkei 225 index lost 276 points.
- U.S. House of Representatives on Wednesday passed two bills intended to support protesters in Hong Kong and send a warning to China about human rights. U.S. President Donald Trump can sign or veto. If Trump signs it could trigger a further worsening in U.S.-China relations
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,752
Target price:
Protective stop:
Outlook
The index made a new historical high at 28,161 on Tuesday, but closed near its day’s low. Price has been moving lower and has moved below the 10EMA. We could see a possible price correction to test the upper trendline support at 27,235, which is also the Fibonacci 38% retracement point. MACD is strong and bullish at the moment, but there is a bearish crossover which hints at a potential downward price movement. Stochastic is in the overbought extreme and is moving down.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,475
Target price:
Protective stop:
Outlook
The recent four days’ rebound was capped by the 20EMA. The 20EMA is declining at the moment and hence we could expect some downward movement in the near term. A big gap was created today. As long as this gap is not closed, price is likely to head lower to its low at 25,540. Stochastic is moving towards its overbought extreme but is still weak. MACD is still bullish, but both lines are falling at the moment
Trading Idea
Sell 26,600 for 25,900 with stop above 26,800
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8256
Target price :
Protective stop:
Outlook
The index made a new all-time high of 8374 on Tuesday night. However, it ended the day with a Doji candlestick. A followed-through candle was seen last night, and price is now moving below the rising channel and the 10EMA. Price is likely to head lower to test the breakout level at 8035. Stochastic is in its overbought extreme and is moving down. MACD is strong and bullish but there is divergence warning given along the way, and a bearish crossover was seen.
Trading Idea
Sell 8290 for 8035 with stop above 8375
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 3101
Target price:
Protective stop :
Outlook
Price created a new-time high at 3132 on Tuesday night and has been moving lower since then. It is now testing the 10EMA. We could see price moving lower to test the gap support at 3065 or even lower at the breakout level which is also the Fibonacci 38% correction point at 3026 if 10EMA cannot halt the price decline. Stochastic is in the overbought region and is moving down. MACD has already shown divergence warning and is moving down
Trading Idea
Wait for better trading idea.
