Market News
- Trading on Wall Street’s three main stock indexes was halted for 15 minutes shortly after the open as the S&P 500 index plunged 8%, crossing the 7% threshold that triggers an automatic trading halt.
- Wall Street suffered its biggest drop since the crash of 1987 on Monday, plunging 12% on a single day, after unprecedented steps taken by the Fed, lawmakers and the White House to slow the spread and blunt the economic impact of the coronavirus, failed to restore order to markets.
- Stocks fell further late in the session as Trump urged Americans to halt most social activities for 15 days and not congregate in groups larger than 10 people, in a bold, new effort to reduce the spread of the coronavirus in U.S.
Market Views
- Most Asian shares fell on Tuesday morning after Wall Street’s historic market rout, with fleeting initial gains evaporating as the coronavirus remained a major risk to economic growth. Nikkei 225 index fell 78 points and Hang Seng index was down 56 points.
- Some investors say markets will not settle unless the U.S. government announces a big fiscal spending package to match the Fed’s bold actions to slash rates and keep credit markets functioning.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 21,086
Target price:
Protective stop:
Outlook
This index has violated the weekly support at 21,466, which is also near to the Fibonacci 161% projection level. The index reached a low of 20,150 overnight. We are likely to see a slight rebound to 21,850 after last night’s huge selloff. A break of yesterday’s low at 20,150 will trigger more downside to 19,780. Stochastic is at the oversold region and could be turning up. MACD is still bearish and there is no sign of divergence yet.
Trading Idea
Sell 21,850 with a stop above 22,250 for 20,150
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 23,123
Target price:
Protective stop:
Outlook
We saw a rebound after this index hit the Fibonacci 261% projection level yesterday. Price will need to penetrate above 23,580 for 24,970, which is the gap resistance and also the support-turned-resistance level. A break of yesterday’s low at 21,626 will trigger more downside towards 20,690. Stochastic is at the oversold region and could be turning up. MACD is still bearish and there is no sign of reversal yet.
Trading Idea
Sell 24,700 for 23,000 with a stop above 25,150
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7300
Target price :
Protective stop:
Outlook
Price has been hovering around the Fibonacci 161% projection level for the past three days. We could see a slight rebound towards 7530 after last night’s huge selloff. A violation of yesterday’s low at 6926 will target for more downside at 6495. Stochastic is still weak at the moment. 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 : 2486
Target price:
Protective stop :
Outlook
Last night’s huge selloff has sent this index lower to 2365. We could see a slight rebound towards 2550, which is Fibonacci 62% of yesterday’s price range. A break of 2365 will trigger more downside towards 2310. Stochastic is at the oversold region and is still weak at the moment. MACD is still bearish and there is no sign of reversal yet.
Trading Idea
Wait for better trading idea
