Market News
- Wall Street stepped back from last week’s record highs on Monday, with weak U.S. manufacturing data and fresh trade worries keeping buyers on the sidelines. The Dow fell 268 points, S&P 500 was down 27 points and Nasdaq Composite declined 97 points.
- The Institute for Supply Management (ISM) reported that American manufacturing activity contracted in November for the fourth consecutive month, stoking concerns that the longest period of economic expansion in U.S. history could be losing steam.
- Trump tweeted on Monday that he would restore tariffs on steel imported from Brazil and Argentina, boosting shares of U.S. steel makers U.S. Steel Corp and AK Steel Holding Corp by 4.2% and 4.7%, respectively. However, fears that Trump is going to increase tariffs against China on December 15 have increased as well.
Market Views
- Stocks in Asia Pacific skidded on Tuesday morning after President Trump stunned markets with tariffs against Brazil and Argentina, recharging fears about global trade tensions, while weak U.S. factory data added to the investor gloom. Hang Seng index slipped 39 points and Nikkei 225 index plunged 201 points.
- China said on Monday U.S. military ships and aircraft won’t be allowed to visit Hong Kong, and also announced sanctions against several U.S. non-government organizations for encouraging protesters to “engage in extremist, violent and criminal acts.”
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,805
Target price:
Protective stop:
Outlook
The index made a new intraday historical high at 28,202 last night during the intraday session, but closed at its day’s low. This could be a Reversal Day price pattern. It is now resting at the 20EMA. Price will need to stay above the 20EMA to continue rallying towards 28,510. A failure move to sustain above the 20EMA would likely bring price lower. The next support comes in at 27,262 which is the Fibonacci 38% correction point. MACD is bullish at the moment, but there is a potential bearish divergence forming. Stochastic is moving lower.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,440
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. Price could be forming a potential Hammer candlestick pattern today and as long as price holds at this support zone, there is chance for the index to test the 20EMA at 26,770. A break of this support range could see price testing the base low at 25,536. Stochastic is turning down and MACD has turned bearish with both lines below the zero line.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8323
Target price :
Protective stop:
Outlook
The index touched its all-time high of 8453 last night, but was closed at its day’s low. This could be a Reversal Day pattern. It is now sitting at the 20EMA support, which is also near to the lower boundary of the channel. The index will turn bearish if it breaks below the channel and will target the 8034 breakout level. Stochastic is moving lower. 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 : 3120
Target price:
Protective stop :
Outlook
The index made a new all-time high of 3157 last night, before moving lower to close at its day’s low. It is now sitting at the 20EMA support level. As long as this support holds, there is chance for this index to test the high at 3157 again. A close below the 20EMA would target for 3065 support zone. Stochastic 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.
