Market News
- Dow Jones tumbled nearly 10% on Thursday, losing 2,352 points to close at 21,200, ended the day as Wall Street’s worst day for three decades. S&P 500 also sank another 9.5% in a dramatic end to a bull market that lasted 11 years, which started during Obama’s presidency in the aftermath of the financial crisis.
- Drops of 10% in the Dow and 9.5% in the S&P 500 were the worst for both since 1987. On Oct. 19, 1987, now known as “Black Monday,” the Dow crashed 22.6% in its biggest ever-single day decline.
- Investors expect the Fed to cut interest rates again aggressively at its policy meeting next week to counter the coronavirus. That followed the Fed’s surprise 50 basis rate cut last week, which failed to stabilize markets.
Market Views
- Asia’s stock markets crashed on Friday morning as panic gripped world financial markets and even haven assets such as gold and bonds were ditched to cover losses in the wipe-out.
- Japan’s Nikkei 225 index was in free fall, dropping 10% and heading for its worst week since the 2008 financial crisis. Hang Seng index slumped 6.8%, its steepest drop since 2008.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 20,428
Target price:
Protective stop:
Outlook
We have seen a further breakdown of this index as it broke below the low at 23,360 that supported the price decline for the three consecutive days. Price violated the weekly support at 21,466 as well, which is also near to the Fibonacci 161% projection level last night after the huge selloff. There is still no sign of divergence warning or sign of recovery as both of the MACD’s lines are still moving lower. Stochastic is also moving down. Price is likely to move lower towards 19,780.
Trading Idea
Wait for a rally to get into the bear trend.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 22,876
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 yesterday 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 to Fibonacci 161.8% target of 20,764 after the Flag pattern target of 22,605 was reached. Stochastic is turning down again. MACD is bearish and both lines are moving lower.
Trading Idea
Wait for a rally to get into the bear trend.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 6965
Target price :
Protective stop:
Outlook
Price gapped down four nights ago and broke below its previous low at 8123 to a low of 7822. This low was taken out last night during the huge selloff. We are likely to see a decline towards the Fibonacci 200% projection level at 6495 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 : 2404
Target price:
Protective stop :
Outlook
This index gapped down four nights ago and broke below its previous low at 2853. Price further broke below its Fibonacci 127% projection point at 2698 during last night’s huge selloff. We are likely to see further downside to 2310. 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
