Market News
- Wall Street roared back to life on Tuesday with all three major indexes surged nearly 5%, rebounding from the brink of bear market confirmation as bargain-hunting and hopes of government stimulus calmed investors’ fears surrounding the coronavirus and growing signs of imminent recession.
- President Trump said he will take “major steps” to allay market fears by asking Congress for a fiscal stimulus package to include a payroll tax cut, among other measures to allay investors’ fears of the coronavirus impact on the US economy.
- Market participants largely expect the Fed to cut interest rates by 50 basis points for the second time this month at the conclusion of next week’s two-day monetary policy meeting.
Market Views
- Markets in Asia Pacific slipped on Wednesday morning as investors continue to watch for developments around government stimulus as the coronavirus continues its spread globally. Nikkei 225 index fell 295 points and Hang Seng index was down 1 point.
- Saudi Arabia said on Tuesday it would boost its oil supplies to a record high in April, raising the stakes in a standoff with Russia and effectively rebuffing Moscow’s suggestion for new talks.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 24,428
Target price:
Protective stop:
Outlook
Price gapped down two nights ago 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. 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 : 25,420
Target price:
Protective stop:
Outlook
Price gapped down two days ago to 24,408 and we have seen a recovery towards the price gap at 25,643 yesterday. 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
Sell 25,650 for 24,500 with a stop above 26,050.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8161
Target price :
Protective stop:
Outlook
Price gapped down two nights ago 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 moving lower. MACD is bearish at the moment but a divergence could be forming.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2809
Target price:
Protective stop :
Outlook
This index gapped down two nights ago and broke below its previous low at 2853. Price reached its Fibonacci 127% projection point and managed to recover higher but price will need to close the gap at 2965 to be bullish again. A failure move to close the gap is likely to bring price lower to the low at 2699 again. Stochastic is moving lower. MACD is bearish but could be forming divergence warning.
Trading Idea
Wait for better trading idea
