Market News
- Coronavirus panic sent U.S. markets tumbling again on Friday, resulting in the Wall Street’s major indices to post its largest weekly fall since the 2008 global financial crisis, and over $5 trillion wiped from global market value this week.
- U.S. stocks shaved most of the day’s losses late in the New York session but only the Nasdaq eked out a positive close. Dow Jones lost nearly 3,600 points last week and the S&P 500 posted a double-digit weekly percentage loss for only the fifth time since 1940.
- Hopes the epidemic, first detected in China in December, would swiftly pass over and economic activity quickly return to normal have been shattered. Countries other than China now account for about three-quarters of new infections.
Market Views
- Asian markets recovered some of the losses from last week on Monday morning. Investors were rattled by weekend data from China that showed its fastest ever contraction in factory activity, raising fears of a global recession from the coronavirus. Hang Seng index rose 230 points while Nikkei 225 index gained 234 points.
- Senior officials in President Donald Trump’s administration on Sunday tried to reduce concern about a global recession, saying the U.S. public had over-reacted after numerous cases were reported in the country and that stocks would rebound due to the economy’s underlying strength.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,575
Target price:
Protective stop:
Outlook
Last Friday, this index ended the week with a Hammer candlestick pattern, after declining for seven consecutive days. We are likely to see a technical rebound to test 27,145-27,320 if the Hammer’s low at 24,685 holds. The next support lies at 24,600 if the Hammer’s low is taken out. Stochastic is turning up from near to the oversold region. MACD has turned bearish.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,379
Target price:
Protective stop:
Outlook
Last Friday, this index ended the day with a Hammer like candlestick pattern, which could be a sign of potential reversal. It is also sitting just above at its previous low, which has provided support to the price decline for three occasions. As long as the low at 25,640 holds, there is chance for this index to move higher to test 26,860. Stochastic is crossing up from the oversold zone. MACD is bearish but could be forming a divergence warning.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8486
Target price :
Protective stop:
Outlook
The index rebounded and formed a potential Hammer looking candlestick pattern last Friday, after encountering a sharp sell-off during the week. It is currently sitting at the Fibonacci 62% correction point of Oct 19 to Feb 20 price swing. As long as the Hammer’s low of 8123 holds, we could see a technical rebound to test 8938. Stochastic is turning up from near to the oversold region. MACD is bearish but the fast line could be moving higher.
Trading Idea
Buy 8350 for 8860 with a stop below 8110
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2968
Target price:
Protective stop :
Outlook
A sharp sell-off last week has sent this index lower to its previous low at 2853. A potential Hammer candlestick was formed last Friday, which could be a sign of potential low and a possible reversal. We could see this index moving higher towards 3062 if the low at 2853 holds. Stochastic is moving higher and near to the oversold region. MACD is bearish at the moment.
Trading Idea
Wait for better trading idea
