Market News
- Wall Street’s three main stock averages closed at a record high on Monday, buoyed by hopes for a trade deal and by M&A activity in luxury goods and online trading. The Dow Jones index was up 190 points. The S&P 500 gained 23 points while the Nasdaq Composite jumped 112 points.
- Traders pointed to China’s decision to increase punishments for intellectual property rights violations as a fresh concession to the United States in the drawn-out and volatile negotiations.
- Also driving Wall Street higher was a burst of major acquisition activity with France’s LVMH offer to buy U.S. jeweler Tiffany & Co and Charles Schwab Corp’s purchase of U.S. discount brokerage TD Ameritrade Holding Corp.
Market Views
- Asian stocks rose on Tuesday as an apparent olive branch from Beijing in trade talks with Washington added to other recent signs of progress, fuelling a rally in Wall Street’s main benchmarks to record highs. The Nikkei 225 was up 232 points while the Hang Seng Index was up 117 points.
- “We have a low interest rate environment that is supportive of equities. If we get better economic news and relief from geopolitical risks, equities could rally further next year.” said Shane Oliver, head of investment strategy and chief economist at AMP Capital Investors in Sydney.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 28,074
Target price:
Protective stop:
Outlook
The index made a new historical high at 28,173 last night after finding support around the 10EMA. We are expecting this index rally to continue towards 28,510. MACD is bullish at the moment, but there is a potential bearish divergence, which hints at a potential downward price movement. Stochastic is moving down from extreme value but is still on the high side.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,035
Target price:
Protective stop:
Outlook
Price managed to close a gap and broke a previous resistance high at 27,158. Price reached a high of 27,321 this morning. The next higher resistance comes in at 27,460 and if price can move above this resistance, it is likely to test another gap resistance 27,613. Stochastic is moving up from the oversold extreme. MACD is still bearish but could be about to turn bullish as both its lines are close to the zero line.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8376
Target price :
Protective stop: 8375
Outlook
The index made a new all-time high of 8413 this morning after finding support around the 10EMA. If the index is able to hold above the 10EMA, it can test the Fibonacci 161.8% price projection at 8450. Stochastic is in its overbought extreme and is moving down. MACD is bullish but there is divergence warning given along the way, and a bearish crossover was seen.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 3133
Target price:
Protective stop :
Outlook
Price created a new-time high at 3145 after finding support at the 10EMA. If the 10EMA holds, the index is likely to test Fibonacci 161.8% price projection of 3170. Stochastic is in the overbought region and is moving down. MACD has already shown divergence warning and is moving down. However, MACD is still bullish and could support a price push higher.
Trading Idea
Wait for better trading idea.
