Market News
- All three major Wall Street indexes tumbled in a volatile session on Tuesday, falling nearly 3% after Fed surprised investors with a half percentage-point cut in interest rates, amplifying fears about the magnitude of the coronavirus impact on the economy.
- The rate reduction came two weeks ahead of a scheduled policy meeting, where traders had fully priced in a 50-basis-point cut. However, the emergency move failed to comfort U.S. financial markets roiled by worries about a deeper, lasting slowdown.
- The 10-year Treasury yield fell below 1% for the first time in history as nervous investors moved money out of the stock market and into US Treasuries. Investors see more rate cuts as well from US central bank in the future.
Market Views
- Asian shares wobbled on Wednesday morning as an emergency rate cut from the Fed did little to soothe investor fears over the coronavirus’s widening fallout. Hang Seng index slid 228 points while Nikkei 225 index was up 12 points.
- Fed Chair Jerome Powell earlier on Tuesday participated in a conference call with the top finance authorities from the world’s seven largest advanced economies, which concluded with a statement that they would take all appropriate measures to support the global economy.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,137
Target price:
Protective stop:
Outlook
Last Friday, this index ended the week with a Hammer candlestick pattern and the index has managed to stay above this low and even test the high of 27,145 yesterday before tumbling lower. Support is now at 26,650 while resistance lies at 27,145. 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 : Neutral
Recommendation : Long
Last : 26,182
Target price: 26,850
Protective stop: 26,000
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
Buy 26,300 for 26850 with stop below 26,000 was filled on 3 Mar.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8665
Target price :
Protective stop:
Outlook
The index saw a technical rebound to 8938 last night after a potential Hammer looking candlestick pattern from last Friday provoked the rebound. As long as the Hammer’s low of 8123 holds, we could see a technical rebound to test higher to the 20EMA at 8950. Stochastic is turning up from near to the oversold region. MACD is bearish but the fast line is moving higher.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 3025
Target price:
Protective stop :
Outlook
We saw this index moved higher to 3126 last night before tumbling lower. It is sitting at a support level and if this support at 2980 holds, there is chance for a retest of 3126. A decline below 2856 would likely see the index moves lower to 2800. Stochastic is moving higher and near to the oversold region. MACD is bearish at the moment.
Trading Idea
Wait for better trading idea
