Market News
- U.S. stocks suffered their worst day in over three months on Monday as China extended the Lunar New Year holiday due to a virus outbreak, fueling worries about the economic impact of containment efforts in the world’s second largest economy.
- The benchmark S&P 500 index lost 51 points while the Dow Jones Index fell 453 points in one of its worst showing in recent months. The Nasdaq Composite dropped 175 points.
- Global stocks and oil prices have tumbled over recent sessions on fears the virus could do further damage to China’s already weakened economy, an engine of global growth.
Market Views
- Asian stocks extended a global selloff on Tuesday as China took more drastic steps to combat the coronavirus, while bonds found favour on expectations central banks would need to keep stimulus flowing to offset the likely economic drag.
- Despite the Wuhan coronavirus spreading to more than 10 countries and causing global equity markets into decline, JPMorgan see this unexpected risk factor as a regional rather than a global shock.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 28,656
Target price:
Protective stop:
Outlook
This index recorded a historical high at 29,402 but price has been moving lower since that day. Price has moved below the uptrend channel as well as below the 20EMA.The next targeted support is at the previous high resistance turned into support at 28,220. Price is likely to test this support level as Stochastic is turning down from the overbought extreme. MACD is bullish at the moment but has a bearish crossover and is moving lower at the moment.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,948
Target price:
Protective stop:
Outlook
This index has been falling after forming a mini Double Top at 29,241. It has declined to a low of 27,592. This is also the Fibonacci 50% support level as well as a previous gap opening. This is a key support level as a violation of 27,592 would accelerate the downside towards 27,200. Stochastic has turned down but MACD is still bullish. However both momentum indicators have given bearish divergence warning of a possible high in the recent past.
Trading Idea
Sell 28,390 for profit objective at 27,200. Stop should be placed above 28,700.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8998
Target price :
Protective stop:
Outlook
Price formed a new historical record high at 9277 on Friday, but ended the day with a bearish Engulfing pattern. Price continued its decline but was halted at the 20EMA. It has to break above this new high for further upside towards 9447. However a move lower to 8823 to test the lower channel line is more likely in the next few days. Stochastic remains in the overbought region but has a bearish crossover and is moving down. MACD is still bullish at the moment with both its line above the zero line but MACD just had a bearish crossover and is moving lower.
Trading Idea
Wait for better trading Idea.
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 3254
Target price:
Protective stop :
Outlook
There was a bearish Engulfing pattern on Friday that bring price lower and on Monday, price has continued the decline to the lower channel support line. If price is unable to hold this support line, we see this index going lower to 3180. However if price is above to hold above this channel line, the bullish trend remains intact and we are likely to see a test of the high again. Stochastic is at the overbought region and turning down. MACD is still bullish but has a bearish crossover and is moving lower.
Trading Idea
Wait for better trading idea.
