Market News
- S&P 500 reversed earlier intraday record highs, closing 4 points lower following a report that U.S. would likely maintain tariffs on Chinese goods until after November’s presidential election. Dow Jones ended the session with a modest gain of 32 points while Nasdaq Composite fell 22 points.
- U.S. will maintain tariffs on Chinese goods until the completion of a second phase of a U.S.-China trade agreement, U.S. Treasury Secretary Steven Mnuchin said on Tuesday, a day before the two sides are to sign an interim deal.
- There are no oral or written agreements between Washington and Beijing on further tariff reductions and any rumors to the contrary are categorically false, Mnuchin and U.S. Trade Representative Robert Lighthizer said.
Market Views
- Asia Pacific’s stocks were lower on Wednesday morning ahead of U.S. and China signing a phase one trade deal. Hang Seng index traded 163 points lower and Nikkei 225 index fell 110 points.
- Markets were also absorbing news that U.S. government is nearing publication of a rule that would vastly expand its powers to block shipments of foreign-made goods to China’s Huawei, as it seeks to squeeze the blacklisted telecoms company, two sources said.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 28,895
Target price:
Protective stop:
Outlook
The index rebounded from the rising trendline support which is also the resistance turned support level after experiencing a huge selloff last Wednesday. It formed a new all-time high at 29,056 but closed lower. As long as price remains in the rising channel, our bullish view unchanged. The next resistance comes in at 29,650. However, the upside could be limited as the MACD histogram is losing strength and a possible bearish divergence could be forming. We could expect price to test its lower channel again. Stochastic is heading lower and MACD is bullish at the moment.
Trading Idea
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Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,778
Target price:
Protective stop:
Outlook
Price gapped up but closed lower yesterday after trading near to its previous high resistance level and also the Fibonacci 161% projection target at 29,300. We could see this index moving lower towards the 20EMA at 28,273 if it breaks below the upper channel support. This index has to penetrate 29,233 for further upside at 30,090. The MACD histogram is weakening and there is potential divergence warning which is hinting of a possible top forming. MACD is still bullish but Stochastic is heading lower.
Trading Idea
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Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9019
Target price :
Protective stop:
Outlook
On Monday, this index recorded a new all-time high at 9079 after being supported by the rising 20EMA three nights ago. Price is still moving along with the rising 20EMA but has fallen inside the rising channel. It could test the 20EMA at 8825 if it can’t break the all-time high as Stochastic is losing its strength and is heading lower. The next resistance comes in at 9447. MACD is still bullish at the moment.
Trading Idea
Wait for better trading Idea.
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 3279
Target price:
Protective stop :
Outlook
The index created a new all-time high of 3295 last night after being supported by the rising trendline. However, it closed lower and formed a spinning top candlestick pattern, which could be a sign of potential high. We could see price moving lower to test 20EMA at 3235 if it can’t penetrate its high. Stochastic is heading lower and there is potential divergence warning that increase odds of potential pullback.
Trading Idea
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