Market News
- U.S. stocks were beaten down on Friday by concerns about the fast-spreading coronavirus fears and after data showed that American business activity stalled in February, signalling a contraction for the first time since 2016.
- Heavyweights Microsoft, Amazon and Apple led stocks in Wall Street lower for a second straight day. Dow Jones fell 227 points, S&P 500 was down 35 points and Nasdaq Composite declined 174 points.
- The Covid-19 virus has spread to hundreds of people in Chinese prisons, contributing to a jump in reported cases beyond the epicenter in Hubei province, including 100 more in South Korea. Cases of the disease have turned up in 26 countries and territories outside mainland China.
Market Views
- Markets in Asia Pacific extended losses on Monday morning as the spread of the coronavirus outside China accelerated with infections jumping in South Korea, Italy and the Middle East, in a worrying new development in the outbreak. Dow futures are down 400 points in Asia morning as Covid-19 worsens. Hang Seng index plunged 460 points and Nikkei 225 points fell 92 points.
- South Korea put the country on high alert after the number of infections surged to over 600 with six deaths. In Italy, officials said a third person infected with the flu-like virus had died, while the number of cases jumped to above 150 from just three before Friday.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 28,557
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 moved below the 20EMA and is now breaking below the bullish trend channel. The 20EMA is falling at the moment, suggesting more potential downward movement ahead. The nearest support lies at the resistance-turned-support level at 28,160. Stochastic is heading lower. MACD remains bullish but just had a bearish crossover. There is a bearish divergence warning as well.
Trading Idea
Wait for better trading Idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,878
Target price:
Protective stop:
Outlook
This index was capped by the Fibonacci 62% correction point of Jan 20’s decline and has been declining since then. It broke below the falling 20EMA and the gap support zone. This index is now moving lower towards the trendline support. We could see more possible downside at the previous low of 26,000 if price breaks below this trendline support. Stochastic is moving lower. MACD is bearish and just had a bearish crossover
Trading Idea
Look to sell at 27,020 for 26,000 with stop above 27,400.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9259
Target price :
Protective stop:
Outlook
The index created a bearish Engulfing candlestick pattern on Jan 20. Price could be forming three black crows, which is a trend reversal pattern. It moved below the 20EMA and is testing the lower trendline support. A break of this support will hint at further downside of 8930. Stochastic is turning down but MACD is still bullish at the moment. There is still no divergence warning from the momentum indicators.
Trading Idea
Wait for better trading Idea
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 3291
Target price:
Protective stop :
Outlook
The index created a bearish Engulfing candlestick pattern. This index could be forming three black crows candlestick pattern if price closed at current level tonight, which is a trend reversal pattern It moved below the falling 20EMA and is now testing the support of 3296. A break of this support is likely to bring price lower to its previous low at 3213. Stochastic is moving lower. MACD is still bullish and just had a bearish crossover.
Trading Idea
Wait for better trading idea.
