Market News
- U.S. major indexes tumbled on Thursday, plunging more than 3%, with shares of banks and travel companies taking a beating, as a new wave of fear about the spread of the coronavirus and its economic impact gripped investors just one day after election results powered a rally.
- The coronavirus has led to more than 3,300 deaths worldwide. In U.S., new cases of the fast-spreading virus were reported on Thursday around New York and in San Francisco.
- Yields on 10-year U.S. Treasuries fell to a record low as investors increased bets that Fed will follow this week’s surprise 50 basis point rate cut with further easing to prevent corporate bond spreads from widening further.
Market Views
- Asian shares followed another Wall Street rout to fall as disruptions to global business from the coronavirus beyond China worsened, stoking fears of a prolonged world economic slowdown. Hang Seng index fell 502 points and Nikkei 225 index plunged 676 points.
- Oil prices rose on hopes that output cuts would protect the market from an expected decline in global energy demand as a result of the coronavirus.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,827
Target price:
Protective stop:
Outlook
Last Friday, this index ended the week with a Hammer candlestick pattern but the rally has been capped at the Fibonacci 50% retracement point of the decline. The index inability to break above this Fibonacci point is likely to see this index moving lower to test the low at 24,705 again. Stochastic is turning up from near to the oversold region. MACD is bearish.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend : Neutral
Recommendation : Long
Last : 26,189
Target price: 26,850
Protective stop: 26,220 Triggered
Outlook
Last Friday, this index ended the day with a Hammer like candlestick pattern, which could be a sign of potential reversal. Price was capped by the trendline resistance, 20EMA and also the Fibonacci 50% correction point of the decline from early Feb. It will need to break above this resistance for further upside. Support is now at the previous low of 25,640. 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. Shifts stop higher to 26,220.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8563
Target price :
Protective stop:
Outlook
The index saw a technical rebound to 9001 three nights ago after a potential Hammer looking candlestick pattern from last Friday provoked the rebound. Price is now capped at the 20EMA, which is also near to the Fibonacci 50% correction point of the decline started since last week. If this index cannot surpass this resistance, we are likely to see this index testing the low again. 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 : 2983
Target price:
Protective stop :
Outlook
This index continued to move higher to 3131 two nights ago. It is now capped at the 20EMA, which is also the Fibonacci 50% correction point of the decline started since last week. Price will need to break above this resistance for further upside, or else we are likely to see this index moving lower to test the low again. Stochastic is moving higher and near to the oversold region. MACD is bearish at the moment.
Trading Idea
Wait for better trading idea
