Market News
- On Tuesday, S&P 500 and the Nasdaq Composite index pared their gains after inching their second consecutive record closing highs after the Federal Trade Commission issued orders to large tech companies to provide information on mergers that were too small to report to antitrust regulators. Microsoft was the biggest drag.
- The World Health Organization called the fast-spreading coronavirus that has killed more than 1,000 people in China as “public enemy number one” and named it officially as Covid-19, but China’s foremost medical adviser said the crisis could be over by April.
- Fed Chair Jerome Powell on Tuesday said U.S. economy was in a very good place and was performing well even as he cited the potential threat from the coronavirus in China and concerns about the economy’s long-term health.
Market Views
- Markets in Asia followed the overnight gains in Wall Street to nudge higher on Wednesday amid hopes the worst of the coronavirus in China may have passed, although prevailing uncertainty about the outbreak has kept investors wary. Hang Seng index gained 190 points and Nikkei 225 index rose 126 points.
- Oil prices rose for a second day on Wednesday amid preliminary signs that new coronavirus cases are slowing in China, easing concerns over the demand impact from the disease in the world’s second-largest oil consumer.
Dow Jones Index
(CFD Symbol: US30)
Trend : Bullish
Recommendation : Long
Last : 29,294
Target price: 29,730
Protective stop: 28,850
Outlook
This index has rebounded and has created a new record high at 29,530 after being supported at the resistance-turned-support level at 28,160. Price managed to rebound at the previous price resistance turned support of 28,955, which is also the 20EMA support two nights ago. As long as this level holds, our bullish view remains intact. Stochastic is turning up and MACD remains bullish. Both momentum indicators could be warning of divergence if momentum failed to pick up.
Trading Idea
Hold Long for 29,730 but bring Stop higher to 28,850.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,768
Target price:
Protective stop:
Outlook
This index managed to recover from the decline after being supported by its previous low at 25,950. Price broke above the Flag pattern, 20EMA and the gap resistance zone yesterday. As long as the gap at 27,470 holds, the upside target will be pegged at 28,610. A move below the gap will likely bring price lower. Stochastic is turning up from the oversold region. MACD has turned bearish but just had a bullish crossover that hint of upside movement.
Trading Idea
Buy on dip to 27,700 for 28,600 with stop below 27,400.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9529
Target price :
Protective stop:
Outlook
The index hit its new intraday record high at 9602 last night. It is still strong and bullish as it is still 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 is rising to the overbought region. 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 : 3360
Target price:
Protective stop :
Outlook
Last night the index created a new intraday record high at 3375 after the index rebounded from the price support which coincided with the trend channel and the 20EMA at 3300. Stochastic is at the overbought region but MACD is still bullish. A bullish MACD crossover was seen, which is likely to bring this index higher towards the next resistance at 3370 or even higher at 3410.
Trading Idea
Wait for better trading idea.
