Market News
- All three major indexes in Wall Street reached new record high on Thursday as China’s moves to limit coronavirus impact and ease concerns over the economic fallout from the coronavirus outbreak.
- China said it would halve additional tariffs levied against some American goods, seen by analysts as a move to boost confidence after the fast-spreading coronavirus disrupted businesses and sparked broad market volatility.
- The number of Americans filing for unemployment benefits dropped to a nine-month low last week, adding to optimism to the market as well. Friday’s monthly U.S. employment report will be watched closely by investors tonight.
Market Views
- A mid-week rally in Asia Pacific markets halted on Friday morning as the growing death toll and economic damage from a new virus spreading from China curtailed further gains. Hang Seng index fell 173 points and Nikkei 225 index declined 44 points.
- The death toll in mainland China rose to 636, more than doubling in just under a week, with the number of infections at 31,161. One of the first Chinese doctors who raised the alarm about the coronavirus also died from the illness at a Wuhan hospital in the early hours of Friday.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 29,323
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. A new record high was created last night at 29,530. 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.
Trading Idea
Look to buy 29,200 for a rally to 29,730 with stop below 28,680.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,319
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. Price was capped by the gap resistance zone as well as the 20EMA resistance overnight. We would like to watch the price reaction at this 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
Wait for better trading Idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9427
Target price :
Protective stop:
Outlook
The index hit its 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
Wait for better trading Idea
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 3342
Target price:
Protective stop :
Outlook
The index has risen back inside the trend channel and also moved above the 20EMA. Last night, it created a new record high at 3358. The immediate support lies at 3298, which is also the lower trend channel support. As long as price moves within the channel, this index will remain bullish. 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.
Trading Idea
Wait for better trading idea.
