Market News
- The Dow soared more than 1,000 points on Tuesday to cap off another volatile session, making back less than half of a day after its steepest decline since the 1987 crash, as Fed took further steps to boost liquidity and stem damage from the coronavirus outbreak that has gripped the global economy.
- U.S. central bank relaunched the so-called Commercial Paper Funding Facility, a financial crisis-era purchase of short-term corporate debt in the hope that companies are able to continue paying workers and buying supplies through the pandemic.
- The amount offered in “repurchase” agreements will now be $1 trillion daily, half in the morning and half in the afternoon – an amount that may be mostly symbolic as firms have so far only tapped a fraction of what the Fed has offered.
Market Views
- Markets in Asia Pacific were higher in Wednesday morning, following the overnight rebound in Wall Street on hopes for $1 trillion stimulus by Fed. Nikkei 225 index rose 296 points and Hang Seng index gained 123 points.
- U.S. Treasury Secretary Steven Mnuchin warned Republican senators on Tuesday that failure to act on a proposed coronavirus rescue package could lead to U.S. unemployment as high as 20% and lasting economic damage.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 20,484
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 rebound that we expected last night was not strong enough as it did not move up at least half of Monday’s range. Price has to move above 21,466 for more upside rebound. A break of yesterday’s low at 20,150 will trigger more downside to 19,780. Stochastic is at the oversold. MACD is still bearish and there is no sign of divergence yet.
Trading Idea
Wait for a rebound to short.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 23,341
Target price:
Protective stop:
Outlook
We saw a rebound after this index hit the Fibonacci 261% projection level two days ago. 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 in the oversold region and could be turning up. MACD is still bearish and there is no sign of reversal yet
Trading Idea
Buy breakout above 23,580 for 24,350 with stop below 22,900
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7210
Target price :
Protective stop:
Outlook
Price has been hovering around the Fibonacci 161% projection level for the past four days. The index did hit 7530 last night, as what we expected for the slight rebound. A move above 7558 will hint for more upside at 8110. 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 a rebound to short.
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2427
Target price:
Protective stop :
Outlook
Monday’s huge selloff has sent this index lower to 2365. There was a slight rebound last night, which meet expectation to hit 2550. This index has to move above 2556 for further upside towards 2670. 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 a rebound to short.