Market News
- Last night, Nasdaq hit a record high and S&P 500 posted its biggest one-day gain in about six months as fears of a heavy economic impact from the coronavirus outbreak waned after China’s central bank intervened. Dow Jones surged 407 points and recovered from steep losses in the prior week
- Investor sentiment was boosted after China’s central bank injected a total of 1.7 trillion yuan ($242.74 billion) through reverse repos for the past two days to stabilize financial market expectations and restore market confidence.
- The People’s Bank of China (PBOC) is likely to lower its key lending rate – the loan prime rate – on Feb. 20, and cut banks’ reserve requirement ratios in the coming weeks, policy sources told Reuters.
Market Views
- Asian stocks steadied on Wednesday morning on hopes of additional Chinese stimulus to lessen the economic impact of a coronavirus outbreak, but risks remain as the illness continues to spread and the death toll neared 500. Nikkei 225 index gained 258 points and Hang Seng index rose 169 points.
- The U.S. Democratic presidential nominating race is also on the radar of investors where technical problems delayed the Iowa caucus results. Results are expected at 5 p.m. ET.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 28,808
Target price:
Protective stop:
Outlook
This index has rebounded after being supported at the resistance-turned-support level at 28,160. It is now trading at the price resistance at 28,955, which is also the channel resistance. Watch out for the price reaction at this key level for clue to the next directional movement. Price has to break above 28,955 to move inside the channel in order to be bullish again. A failure move inside the channel will increase likelihood of price testing the support at 28,160. A bullish Stochastic crossover could be likely in the coming session. MACD is bullish at the moment.
Trading Idea
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Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,768
Target price:
Protective stop:
Outlook
This index managed to recover from the decline after being supported by its previous low at 25,950. It has moved inside the trend channel. The immediate resistance comes in at the 20EMA of 27,530, which is also the gap resistance zone. As long as the index stays below 27,580, the trend remains bearish. Stochastic is turning up from the oversold region but MACD has turned bearish.
Trading Idea
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Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9328
Target price :
Protective stop:
Outlook
The index created a new record high at 9363 last night. It is still strong and bullish as the index is trading within the bullish trend channel. The 20EMA remains bullish and is still rising. The 20EMA will also be acting as support for the moment. We peg the next resistance at 9678, which is the Fibonacci 300% projection level. Stochastic had formed a bullish crossover. MACD is still bullish at the moment with both its line well above the zero line.
Trading Idea
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S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 3293
Target price:
Protective stop :
Outlook
Last night, the index has risen back inside the trend channel and also moved above the 20EMA. However, the index is capped at the price resistance at 3298. We would like to see price break above this resistance to test its all-time high resistance at 3337. A failure breakthrough will likely to bring price lower to 3180 again. Stochastic is turning up and MACD is still bullish at the moment
Trading Idea
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