Market News
- Wall Street continued its steep sell-off for the second day as the coronavirus spread further around the world and investors struggled to gauge the economic impact. The Dow and S&P 500 tumbled more than 3%, while Nasdaq Composite declined 2.8%.
- Fears of a pandemic escalated after the Covid-19 spread to Spain and dozens of countries, from South Korea to Italy, accelerated emergency measures while Iran’s virus death toll rose to 16, the highest outside China.
- The CBOE Volatility Index which known as Wall Street’s fear gauge, climbed above 30 for the first time since December 2018 and closed at 27.85. The U.S. 10-year Treasury yields hit a record low as well.
Market Views
- Asia Pacific markets fell on Wednesday morning trade due to a warning to Americans to prepare for the possibility of a coronavirus pandemic drove another Wall Street tumble and pushed yields on safe-haven Treasuries to record lows. Hang Seng index slid 222 points and Nikkei 225 index lost 319 points.
- U.S. Centres for Disease Control and Prevention on Tuesday warning Americans to prepare for the spread of coronavirus in U.S., signaling a change in tone for the Atlanta-based U.S. health agency.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,254
Target price:
Protective stop:
Outlook
Two days of consecutive decline has sent this index below the bullish trend channel, the two resistance-turned-support levels at 28,160 and 27,320 and the 20EMA to a low of 26.994. The next support lies at 26,460. Stochastic is heading lower and is near to the oversold region. MACD is still bullish but the slow line is approaching the zero line.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,725
Target price:
Protective stop:
Outlook
This index was capped by the Fibonacci 62% correction point and has been declining since then. It broke below the falling 20EMA, the gap support zone and closed below the channel two days ago as well. As long as the gap resistance zone from 27,169 to 27,264 is not completely filled, we could see more possible downside to the previous low of 26,000. Stochastic is moving lower. MACD is bearish and just had a bearish crossover.
Trading Idea
Look to sell at 27,100 for 26,100 with stop above 27,400.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8921
Target price :
Protective stop:
Outlook
The index created a bearish Engulfing candlestick pattern on Jan 20 followed by. A Three Black Crows candlestick pattern a few days later, which are both trend reversal pattern. It has moved below the 20EMA and the bullish trend channel. We could see a possible corrective move back to test the trendline resistance at 9250. If price stays below 9220, the trend remains bearish and the index is likely to move lower towards 8660. Stochastic is turning down but MACD is still bullish at the moment.
Trading Idea
Wait for better trading Idea
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 3153
Target price:
Protective stop :
Outlook
The index created a bearish Engulfing candlestick pattern and has moved below the falling 20EMA and also its previous low at 3213. We may see a correction higher to 3210 but the trend is likely to be bearish unless price can move back into the uptrend channel. The next support lies at 3070. Stochastic is moving lower and near to the oversold region. MACD is still bullish and just had a bearish crossover.
Trading Idea
Sell 3210 with a stop above 3260 for 3110.
