Market News
- U.S. stocks continued their selloff on Wednesday and Dow Jones erased virtually the last of its gains since Trump’s 2017 inauguration, as the widening repercussions of the coronavirus pandemic threatened to cripple economic activity.
- In one of the most dire forecasts yet issued for the potential hit from the epidemic, a JP Morgan economist said the U.S. economy could shrink 4% this quarter and 14% next quarter, and for the year it is likely to shrink 1.5%.
- Wednesday’s selling at one point triggered another 15-minute trading halt at a 7% decline in yet another day of volatile trading. The CBOE Volatility index ended up at 76.45.
Market Views
- Asian stocks struggled to find their footing in volatile trade on Thursday morning, as the latest promise of stimulus from the European Central Bank propped up sentiment while the world struggles to contain the coronavirus pandemic. Hang Seng index plunged 1,065 points and Nikkei 225 index fell 124 points.
- In the latest move by a central bank to try to halt the spiralling economic and financial crisis sparked by the coronavirus epidemic, the European Central Bank kicked off a 750 billion euro ($820 billion) emergency bond purchase scheme after an unscheduled meeting on Wednesday.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 19,188
Target price:
Protective stop:
Outlook
This index continued its decline to a low of 18,897 overnight. The decline looks strong and there are still no signs of a possible turnaround in the index at the moment. The next support level is at the Fibonacci 261.8% point at 16,721. Stochastic is deep into the oversold region and is not turning up yet. MACD is still bearish and both its lines are still pointing lower.
Trading Idea
Sell 20,850 with a stop above 21,405 for 19,100.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 21,405
Target price:
Protective stop:
Outlook
We have seen this index continued its decline to a low at 21,006 today. Price is likely to move further down towards 20,690, which is the Fibonacci 261.8% of the first decline as long as price is unable to move above 23,585. Stochastic is in the oversold region and could be turning up. MACD is still bearish and both its lines are moving lower.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7034
Target price :
Protective stop:
Outlook
Price has been hovering around the Fibonacci 161% projection level for the past five days. The index did hit 7530 two nights ago, as what we had anticipated for the slight rebound. But price is more likely to break the low at 6926 for more downside to 6495. Stochastic has a divergence warning but 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 : 2340
Target price:
Protective stop :
Outlook
Price broke below Monday’s low at 2365 last night, but didn’t close at its day’s low. We have seen price continued moving lower today and it could be heading towards 1974 if price break below 2275. Stochastic is at the oversold region and is still weak at the moment. Stochastic is starting to show divergence. MACD is still bearish and there is no sign of reversal as yet.
Trading Idea
Wait for better trading idea
