Market News
- Wall Street’s major indexes fell from record highs on Friday. Friday’s decline put the benchmark S&P 500 in the red for the week, closing 23 points lower, snapping a five-week winning streak for the index. Dow Jones fell 233 points and Nasdaq Composite slid 71 points.
- Data from the Institute for Supply Management showed a bigger-than-expected contraction in U.S. factory activity in December, which declined by the most in more than a decade, raising concerns of slowing U.S. economic growth.
- Tensions elevated last Friday and continued into the new week after Iran’s top military commander, Qassem Soleimani, was killed in a U.S. air strike in Baghdad. This raised concerns of retaliation from Iranian forces in Middle East as Iran vowed revenge for the killing of head of its elite Quds Force, in an air strike authorized by Trump.
Market Views
- Asian share markets were in turbulence on Monday morning session as a flare-up of tensions in the Middle East sent gold to its highest in almost seven years while oil flirted with four-month peaks. Nikkei 225 index plunged 483 points after returning from the holidays, and Hang Seng index fell 160 points.
- Oil prices surged 3% on Friday on worries that potential conflict between the U.S. and Iran could disrupt energy production in the region.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 28,510
Target price:
Protective stop:
Outlook
The index recorded a new all-time high at 28,908 last Thursday, which is also the Fibonacci 127% projection level. Price is still moving within the rising channel but a break of the 20EMA, coupled with the break of the channel, can send the index lower to 28,000. MACD is bullish at the moment but there is potential divergence warning and just had a bearish crossover. Stochastic is moving lower for overbought extreme.
Trading Idea
Sell 28,700 with stop above 28,905 for a decline to 28,370
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,323
Target price:
Protective stop:
Outlook
This index broke above the rising channel resistance last Thursday. However, this breakout was unable to sustain whereby price formed a Dark Cloud Cover candlestick pattern, which is a top reversal pattern. We will require a confirmation of a close below 28,194 today, for a target of 27,500. MACD is still bullish but there is potential divergence warning and there is bearish MACD crossover. Stochastic is moving lower.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8750
Target price :
Protective stop:
Outlook
The index recorded a new all-time high of 8882 last Thursday, which is near to the rising channel resistance. We could see a possible price pullback to the rising 20EMA support at 8648 or dips towards the lower channel support at 8456. As long as this index moves within the channel, our bullish view remains intact. MACD is still bullish at the moment but just had a bearish crossover, hinting at possible downward movement in the coming session. Stochastic is falling at the moment.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 3221
Target price:
Protective stop :
Outlook
This index created a new all-time high at 3260 last Thursday and it is now sitting at the 20EMA support at 3204. As long as this index holds above the rising trendline, we pegged our next resistance level at 3315. However if the trendline breaks, we could see a pullback to 3155. MACD is still bullish at the moment but there is potential divergence warning that is giving concern. Stochastic is moving lower from overbought extreme.
Trading Idea
Wait for better trading idea.
