Market News
- The S&P 500 ended slightly lower on Wednesday, as an initial boost from the likes of Apple, Boeing and General Electric following their quarterly results faded in the wake of a policy announcement from the Federal Reserve.
- The Dow Jones Industrial Average rose 11.6 points to 28,734 while the S&P 500 lost 2.84 points to 3,273.4 The Nasdaq Composite added 5.48 points to 9,275.16. The Dow was up 150 point but declined to close 11 points higher after announcement of FOMC rate decision.
- The Federal Reserve held rates steady as expected while offering no new guidance on its balance sheet, but Powell noted “uncertainties about the outlook remain” and noted the coronavirus outbreak in China.
Market Views
- Asian stocks slipped on Thursday as MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.8% to an almost seven-week low. The Nikkei 225 index was down 290 points while the Hang Seng Index was lower by 220 points.
- While China’s flu-like illness, which has killed more than 100, continues to spread and keep markets on edge, there were signs investors see the recent rout in asset prices as overdone.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 28,595
Target price:
Protective stop:
Outlook
Price moved below the uptrend channel and below the 20EMA but the follow through was not strong. Price rally is currently halted by the 20EMA and price resistance at 28,948. 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
Sell rally to 28,750 for 28,220 with stop above 28,970
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,728
Target price:
Protective stop:
Outlook
This index broke below the Fibonacci 50% support level as well as a previous gap opening at 27,592. This is a key support level and a violation of 27,592 would accelerate the downside towards 26,400, which is the lower channel support of the trend channel. Stochastic has turned down but MACD is still bullish.
Trading Idea
Wait for better trading Idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9048
Target price :
Protective stop:
Outlook
The index was supported at the 20EMA and managed to recover to 9148 but if the index is unable to break above this resistance, it could be moving lower to 8823 to test the lower channel line. 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
The index managed to find support at the lower trend line of its trend channel and has recovered. However, its inability to move past a resistance point 3290 could lead to a decline to test the lower channel support line again. If price is unable to hold this support line, we see this index going lower to 3180. 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.
