CFD Indices – Trump’s Package Fails To Spark Market

Market News

  • Overnight in Wall Street, all three major stocks indexes plunged more than 4.7% with the Dow confirming a bear market for the first time since the financial crisis as it fell 20.30% from its Feb 12’s high. S&P 500 and Nasdaq Composite are also near to the bear territory as it lost 19% from its Feb 19’s record high.
  • The latest investor pessimism came after the World Health Organization classified the coronavirus outbreak as a pandemic, and after Reuters reported that the White House had ordered top-level coronavirus meetings to be classified.
  • Trump announced on Wednesday that U.S. will suspend all travel from Europe, except from the United Kingdom, to the U.S. for 30 days starting on Friday. However, Trump said trade will not be affected by the restrictions.

Market Views

  • Asian shares crumbled on Thursday morning after Trump stunned investors by announcing a temporary travel ban from Europe in an effort to curb the spread of the coronavirus, threatening more disruptions to businesses and the world economy. Nikkei 225 index slumped 1,003 points and Hang Seng index slipped 910 points.
  • Oil prices extended losses as they were also hit by renewed weakness in the stock market and as Saudi Arabia and the United Arab Emirates announced plans to escalate the burgeoning price war.

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 22,477
Target price:
Protective stop:

Outlook
Price gapped down three nights ago and broke below its previous low at 24,685. This index continued to break below the Fibonacci 127% projection level at 23,360, which is also the previous three days’ low today. We are likely to see this index falling towards its Dec 18’s low at 21,466. Stochastic is turning down with a bearish crossover. The MACD is bearish with both of the MACD’s lines moving lower.

Trading Idea
Sell 23,360 for 21500 with stop above 23,950


Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 24,202
Target price:
Protective stop:

Outlook
This index broke below its Aug 19’s low, which coincide with the Fibonacci 127% projection level of the Feb 20’s decline today with a falling window. Price broke below a bearish Flag pattern as well, which is a sign of the continuation of the downtrend. We are likely to see price moving lower towards the Flag pattern target of 22,605 if price cannot rise back above 24,950. Stochastic is turning down again. MACD is bearish and both lines are moving lower.


Trading Idea
Sell 24,650 for 24,010 with a stop above 25,105


Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7653
Target price :
Protective stop:

Outlook
Price gapped down three nights ago and broke below its previous low at 8123 to a low of 7822. This low was taken out this morning when price moved down to 7604. We are likely to see a decline towards the Fibonacci 162% projection level at 7116 unless price can go above 8390. Stochastic is moving lower. MACD is bearish and both of its lines are moving lower.

Trading Idea
Wait for better trading idea


S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2626
Target price:
Protective stop :

Outlook
This index gapped down three nights ago and broke below its previous low at 2853. Price further broke below its Fibonacci 127% projection point at 2698 this morning. Price reached a low of 2605 this morning and we are likely to see further downside to 2517. Only a close above 2905 would turn the chart picture bullish again. Stochastic is moving lower. MACD is bearish with both lines are moving lower.

Trading Idea
Wait for better trading idea

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