Market News
- U.S. stocks sold off for a third consecutive session on Tuesday after comments from President Trump and Commerce Secretary Wilbur Ross threw cold water on hopes of a possible near-term respite from the market-bruising U.S.-China trade war. The Dow fell 280 points while S&P 500 and Nasdaq Composite declined 20 and 47 points.
- The optimism of the trade deal was dampened as Trump suggested a deal might have to wait until after the 2020 election, and separately, Ross confirmed that new tariffs on Chinese imports would take effect on Dec. 15 as scheduled, unless substantial progress was made.
- France threatened to retaliate over potential new U.S. duties of up to 100% on imports of champagne, handbags and other French products worth $2.4 billion, suggested that America’s hydra-headed tariff war against its major trading partners would continue to dominate markets for the foreseeable future.
Market Views
- Asian markets extended their losses on Wednesday morning after Trump said a trade deal with Beijing might have to wait until after the 2020 presidential election, dashing market hopes for a quick preliminary agreement. Hang Seng index slipped 291 points and Nikkei 225 index fell 292 points.
- Business activity in Hong Kong contracted at the fastest pace in 21 years in November, dragged down by anti-government protests and softening global demand, plunging its economy into recession for the first time in a decade.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,495
Target price:
Protective stop:
Outlook
The index made a new intraday historical high at 28,202 on Monday during the intraday session, but closed at its day’s low, resulting in a Reversal Day price pattern. Price broke below the 20EMA, and the 20EMA is falling at the moment, hintting at a potential decline in the short term. The next support comes in at 27,262 which is the Fibonacci 38% correction point. A break of this level would target for 26,791 and 26,681. 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 : 26,107
Target price:
Protective stop:
Outlook
Price moved below the 20EMA after a gap down was seen last Friday and has been declining since. The index broke below its previous low support range of 26,216-26,328 as well, and we are expecting this index to test the base low at 25,536 if the index is unable to move above 26,328. Stochastic is moving lower and MACD has turned bearish with both lines below the zero line.
Trading Idea
Sell 26,200 for 25,600 with a stop above 26,360
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8252
Target price :
Protective stop:
Outlook
The index touched its all-time high of 8453 on Monday, but closed at its day’s low, resulting in the formation of a Reversal Day pattern. Price broke below the rising channel and moved below the declining 20EMA, which is pointing at a potential decline in the near term. This index could be moving lower towards the breakout level of 8034. Stochastic is moving lower from the overbought extreme. 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 : 3092
Target price:
Protective stop :
Outlook
The index made a new all-time high of 3157 on Monday, before moving lower to close at its day’s low. Price moved below the 20EMA and is now sitting at the small gap support of 3035-3065. The 20EMA is declining at the moment. This index could be moving lower to the breakout level of 3028 if it cannot sustain at this gap support zone. Stochastic is moving down. MACD is bullish but the fast line is below the zero line. There is also divergence warning given along the way, and a bearish crossover was seen.
Trading Idea
Wait for better trading idea.
