Market News
- U.S. stocks fell on Thursday, led by declines in technology heavyweights such as Microsoft, Apple and Amazon, after a central Beijing hospital reported 36 new cases, raised worries about a potential increase in infections in the Chinese capital and intensified fears over its spread and impact on the global economy.
- Investors were unnerved after Japan reported two new deaths and South Korea reported a rise in new infections, which suggesting that the Covid-19 was spreading more quickly than previously thought.
- The International Monetary Fund said this week the epidemic had already disrupted economic growth in China and could derail a “highly fragile” projected recovery in the global economy in 2020 if it spread to other countries.
Market Views
- Asian shares were cast adrift on Friday morning as fears over the creeping spread of the coronavirus sent funds fleeing to the sheltered shores of U.S. assets, lofting the dollar to three-year highs. Hang Seng index plunged 286 points while Nikkei 225 index fell 23 points.
- U.S. government still expects Beijing to honour its commitments to buy more American goods under a trade deal signed in January despite the fast-spreading coronavirus outbreak, a senior U.S. official said on Thursday.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 29,109
Target price:
Protective stop:
Outlook
This index made a new record high at 29,584 on the 12th of Feb 2020 and has been declining since that date. Price is now moving below the 20EMA and is approaching the support level at 28,935. A violation of this level is likely to bring price lower to test the lower channel support at 28,620 or the resistance-turned-support level at 28,160. Stochastic is moving lower from the overbought. MACD remains bullish but just had a bearish crossover. There is a bearish divergence warning as well.
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Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,330
Target price:
Protective stop:
Outlook
Price broke above the Flag pattern, 20EMA and the gap resistance zone last Tuesday. The breakout is not strong and price has decline back to the gap support area. A break of this support zone is likely to bring price lower to the trendline support at 26,780. Stochastic is turning down from the oversold region. MACD is bearish and a bearish crossover could be in the formation
Trading Idea
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Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9569
Target price :
Protective stop:
Outlook
The index created a new intraday record high at 9753 last night, but failed to close at the high. It is now trading inside the bullish trend channel, and the rising 20EMA is acting as support at 9447. A break of the 20EMA will target the lower channel at 9270. Stochastic is turning down from the overbought extreme but MACD is still bullish at the moment. There is still no divergence warning from the momentum indicators.
Trading Idea
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S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 3358
Target price:
Protective stop :
Outlook
The index again created a new intraday record high at 3397 last night, but unfortunately closed lower. It is now testing the lower bullish channel support, which is also at the 20EMA at 3342. We are likely to see a decline towards the 3296 if price break below the channel. Price has to break above 3397 for further upside towards 3410.Stochastic is at the overbought region. MACD is still bullish and there is no sign of divergence warning yet.
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