Market News
- Wall Street’s major indices ended Friday’s session lower as U.S.-China discord over Hong Kong fueled investor anxiety about trade talks and retail stocks dipped as in-store Black Friday sales appeared to draw smaller crowds. Dow Jones slipped 112 points, S&P 500 was down 12 points and Nasdaq Composite declined 39 points.
- On Friday, Reuters reported that the U.S. government may expand its power to stop more foreign shipments of products with American technology to China’s Huawei, due to frustration that a blacklisting failed to end supplies to the world’s largest telecoms equipment maker.
- Spot check reports on retailers around the country showed fewer people than in past years lining up outside stores at the start of Black Friday, suggesting that online buying may have taken the shine off America’s biggest shopping day.
Market Views
- Asian shares ticked up on Monday morning after a big fall late last week, as investors clung to hopes Beijing and Washington could reach a compromise in trade talks although increasing tensions over Hong Kong unsettled market confidence. Hang Seng index rose 128 points and Nikkei 225 index climbed 257 points.
- Chinese factory activity in November came in stronger than expected over the weekend, with the Caixin/Markit manufacturing Purchasing Managers’ Index for the month rising to 51.8, which was higher than expectations of a 51.4 reading by economists in a Reuters poll.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 28,163
Target price:
Protective stop:
Outlook
The index has made a new historical high at 28,192 last Wednesday. Price is now supported by the rising 10EMA. We expect this index to continue rallying towards 28,510 if price can penetrate above 28,192. MACD is bullish at the moment, but there is a potential bearish divergence forming, which hints at a potential downward price movement. Stochastic is also moving higher and is near to the overbought extreme.
Trading Idea
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Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,494
Target price:
Protective stop:
Outlook
Price moved below the 20EMA after a gap down was seen last Friday. It is now sitting on its previous low support range of 26,216-26,328. A break of this support range will accelerate the downward momentum and we could see price testing the base low at 25,536. Stochastic has not moved to the overbought region but is about to turn down, which is a sign of weakness. MACD has turned bearish with both lines below the zero line.
Trading Idea
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Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8445
Target price :
Protective stop:
Outlook
The index made a new all-time high of 8453 last Wednesday. Price is moving within a rising channel, and the 10EMA is acting as another layer of support. The next resistance comes in at the Fibonacci 161.8% price projection at 8450. The index will only turn bearish if it breaks below the channel. Stochastic is in its overbought extreme and is moving up. MACD is bullish but there is divergence warning given along the way, and a bearish crossover was seen.
Trading Idea
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S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 3153
Target price:
Protective stop :
Outlook
Last Wednesday, price created a new-time high at 3155 after finding support at the 10EMA. Price has hit its Fibonacci 162% extension level. The next resistance comes in at 3234 and we see the rally continuing towards this target. Stochastic is in the overbought region but is still strong at the moment. MACD has already shown divergence warning but is about to have a bullish crossover. MACD is still bullish and could support a price push higher.
Trading Idea
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