CFD Indices – Trump’s Package To Save The Dow?

Market News

  • Trading in Wall Street was halted within minutes of opening last night, as major indices broke through the level that triggered the New York Stock Exchange’s ‘circuit-breakers’, triggering trading halts put in place in the wake of 1987’s “Black Monday” crash amid a fresh wave of panic-selling.
  • Dow Jones plummeted a record 2,000 points out of the starting gate on a day that marked the current bull market’s 11th year. It was the biggest one-day loss since the 2008 financial crisis. S&P 500 and Nasdaq Composite were both plunged 7.3% in a single day.
  • The sell-off began over the weekend when an oil supply pact between Saudi Arabia and Russia collapsed and both countries vowed to hike production amid weakening global demand due to the coronavirus and signs of an economic slowdown. Oil prices also registered their biggest one-day fall since the 1991 Gulf war.

Market Views

  • Asian markets skidded again on Tuesday morning trade session after Wall Street suffered its biggest one-day loss since the 2008 financial crisis, but the selling was restrained by hopes for coordinated policy action to quell the panic. Nikkei 225 index fell 293 points and Hang Seng index declined 53 points.
  • Trump plans a news conference later on Tuesday to lay out proposed measures and dealers reported rumors Treasury Secretary Steve Mnuchin was touting major steps including buying non-Treasury fixed income assets.

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 24,446
Target price:
Protective stop:

Outlook
Price gapped down last night and broke below its previous low at 24,685. The decline was halted just above the Fibonacci 127% projection level at 23,360, but the index has to close the gap for further upside. If price can stay above 23,360, we are likely to see a test of 26,660 again. Otherwise, we peg the downside at 21,660. Stochastic is turning down and is going to cross down soon. The MACD is still bearish but could be forming a divergence with price.

Trading Idea
Wait for better trading idea


Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 25,254
Target price:
Protective stop:

Outlook
Price gapped down yesterday to 24,408 and this morning we are seeing a recovery towards the price gap at 25,643. If price is unable to move above the gap, we are likely to see a test of 24,408 again. Above the gap, we can see a test to 26,500.  Stochastic is turning down and is going to cross down soon. MACD is bearish but a possible divergence could be forming


Trading Idea
Wait for better trading idea


Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8166
Target price :
Protective stop:

Outlook
Price gapped down last night and broke below its previous low at 8123 to a low of 7822. If price cannot climb back to close the gap at 8497, we are likely to see another test of the low at 7822. Above the gap we see a test to 8745. Stochastic is turning down and is going to have a bearish crossover. MACD is bearish at the moment but a divergence could be forming.

Trading Idea
Buy 8120 with a stop below 7990 for a move to 8480.


S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2817
Target price:
Protective stop :

Outlook
The technical rebound of this index was capped at the 20EMA which is also the Fibonacci 50% correction point of the Feb’s decline. This index has fallen below its previous low at 2853. We are likely to see more downside to 2706 if this cannot move back 2853. Stochastic is moving lower and is going to cross down soon. MACD is bearish and the fast line is moving down

Trading Idea
Wait for better trading idea

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