Market News
- U.S. stocks rallied for a third straight day on encouraging economic data, pushing the benchmark S&P 500 to a record high on Wednesday. Nasdaq notched a record close as well but steep losses in Tesla shares limited the index’s advance.
- The fears for the Wuhan coronavirus outbreak has lessen after early reports that a Chinese university team found a drug to treat people infected while UK researchers said they made a “significant breakthrough” in finding a vaccine.
- ADP National Employment Report showed private payrolls jumped by 291,000 jobs in January, the most since May 2015, while a separate report showed U.S. services sector activity picked up last month, suggesting the economy could continue to grow moderately this year even as consumer spending slows.
Market Views
- Asian stocks jumped on Thursday morning as the market sentiment was boosted after S&P 500 hit a record peak, while investors keep a wary eye on the impact of the coronavirus outbreak. Nikkei 225 index advanced 459 points while Hang Seng index rose 386 points.
- A senior strategist at Sumitomo Mitsui DS Asset Management warned investors to remain cautious as the coronavirus is continuing to spread, but the markets now appear to think that there will be a quick economic recovery after a short-term slump.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 29,398
Target price:
Protective stop:
Outlook
This index has rebounded after being supported at the resistance-turned-support level at 28,160. It managed to break above the price resistance at 28,955 as well. It has now risen back inside the trend channel, which is a good sign. Stochastic is turning up. MACD remains bullish and just had a bullish crossover. These could support price to move higher towards the further upside at 29,730.
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Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,260
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 : 9417
Target price :
Protective stop:
Outlook
The index created a new record high at 9456 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 : 3347
Target price:
Protective stop :
Outlook
The index has risen back inside the trend channel and also moved above the 20EMA. Last night, it managed to break above the price resistance of 3298 that capped price rally three times and a new record high of 3339 was formed. Stochastic is turning up and MACD is still bullish. A bullish MACD crossover was seen, which is likely to bring this index higher towards the next resistance at 3370.
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