Market News
- U.S. markets ended slightly lower on Tuesday, though not far from record highs, as investors awaited concrete news on whether a new round of U.S. tariffs on Chinese goods would take effect on Dec. 15, a potential turning point in a trade dispute between the world’s two largest economies that has convulsed markets.
- A Wall Street Journal report that said U.S. and Chinese officials were preparing for a delay to the Dec. 15 round of tariffs knocked bonds but did not shift stocks since it suggested no resolution to the trade conflict. White House economic adviser Larry Kudlow said later that no decision had been made.
- In another trade-related development, Canada, Mexico and the United States agreed to an overhaul of their quarter-century-old regional trade pact, but there were few hints of progress on a deal between the globe’s two largest economies.
Market Views
- Asian stocks were flat on Wednesday morning trade as Sino-U.S. trade talks approached a weekend deadline with little sign of progress, while a tightening of the UK election race weighted concerns. Nikkei 225 index slid 57 points and Hang Seng index rose 41 points.
- Investors are beginning to suspect that even if U.S. tariffs due to take effect on Sunday are delayed, it may be 2020 before Washington and Beijing can agree a broader agreement.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,881
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 but is weak. MACD is bullish at the moment.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,501
Target price:
Protective stop:
Outlook
Price is currently testing its overhead 20EMA resistance at 26,599. 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
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8353
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. Price tested the channel resistance but the attempt failed. We could see price moving lower towards the breakout level of 8034 if price move below the rising 20EMA at 8310. Price will need to penetrate above its all-time high to be bullish again. Stochastic is moving higher but is weak. MACD is bullish but the slow line is moving lower towards the zero line.
Trading Idea
Wait for better trading idea
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 but still weak. MACD is bullish but the slow line is moving lower towards the zero line
Trading Idea
Wait for better trading idea.
