CFD Indices – Dec. 15 Trade Tariffs Looms

Market News

  • U.S. stocks pulled back on Monday from near-record levels, as Apple and healthcare shares fell and investors braced for a busy week of political and economic news, including a potential turning point in the U.S.-China trade dispute. Dow Jones fell 105 points while S&P 500 and Nasdaq Composite declined 9 and 34 points.
  • The market is in a little bit of a wait-and-see mode. Investors are waiting to see what is going to happen with the tariff situation come December 15th.
  • Aside from the trade front, Fed’s two-day policy meeting that expected to keep rates unchanged ends Wednesday, an election in the United Kingdom on Thursday, and potential agreement related to a North American trade pact will also be focus of this week.

Market Views

  • Asia Pacific’s stocks were lower on Tuesday morning as investors refrained from making major bets before Dec. 15, when the next round of U.S. tariffs on Chinese imports is due to take effect. Hang Seng index declined 12 points and Nikkei 225 index fell 2 points.
  • U.S. Trade Representative Robert Lighthizer and White House senior adviser Jared Kushner are due to fly to Mexico City on Tuesday to try to pin down final details of the agreement, an administration official told Reuters late Monday afternoon.

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,917
Target price:
Protective stop:

Outlook
The index has rebounded from the resistance-turned-support level, which is also near to the Fibonacci 38% correction point. Price will need to break above its new intraday historical high at 28,202 to be bullish again and for a test of 28,866. A failure to penetrate above 28,202 will likely bring the index back to test the support range at 27,260-27,320 again. Stochastic is now moving higher. MACD is bullish at the moment, and the fast line is turning up.

Trading Idea
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Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,510
Target price:
Protective stop:

Outlook
Price is currently testing its overhead 20EMA resistance at 26,613. This index will need to move above the declining 20EMA for further upside towards 27,315. A move above the gap resistance of 26,786 would increase the likelihood of this index testing 27,315. A failure attempt to penetrate above the 20EMA would target the base low at 25,536. Stochastic is turning up. MACD has turned bearish with both lines below the zero line, but there is potential divergence warning and a bullish crossover was seen.

Trading Idea
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Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8362
Target price :
Protective stop:

Outlook
The index touched its all-time high of 8453 last Monday, but closed at its day’s low, resulting in the formation of a Reversal Day pattern. Last night, price tested the channel resistance but the attempt failed. A failure to move above the channel would target the breakout level of 8034. Stochastic is moving higher. 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 : 3137
Target price:
Protective stop :

Outlook
The index rebounded from the small gap support zone of 3035-3065. It has moved above the rising 20EMA. Price will need to move above its all-time high of 3157 to continue rallying towards 3234. A failure to penetrate above the all-time high will likely bring price lower to test the gap support zone again. Stochastic is moving higher and MACD is bullish.

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